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  • Publication | 2024

Tanzania Economic Update - Overcoming Demographic Challenges while Embracing Opportunities

Global Food and Nutrition Security

Tanzania has managed to sustain its growth momentum despite the intensifying effects of climate change. Tanzania’s real GDP growth rate rose from 4.6 percent in 2022 to 5.2 percent in 2023, as a stronger business climate and improved trade balances boosted aggregate demand, offsetting the damaging impact of droughts and floods on household income. According to the NBS, the services sector accounted for half of GDP growth during the first nine months of 2023, led by the strong performance of the financial and insurance, tourism, transportation, and accommodation subsectors. Agricultural output increased in 2023, albeit at a slower pace, as recurrent floods and droughts destroyed livestock and farm fields, slashing the production of major staple foods. The industrial sector also sustained its growth momentum, with mining, manufacturing, and construction each contributing about 30 percent to the sector’s expansion. While Tanzania’s