The World Bank has upgraded its assessment of prospects for Tanzania’s economic growth this year as the world starts to recover from the impact of the Covid-19 pandemic, which was expected to send sub-Saharan Africa into recession in 2020. It has forecast that Tanzania’s economy will grow by 5.5% in 2021.
Tanzania’s real GDP had been growing at an average of 7% over the last decade but the government lowered its projections for 2020 from 6.9% to 5.5% due to various factors, including Covid-19, heavy rains and delayed implementation of some projects.
Tanzania is among the fastest growing economies in sub-Saharan Africa and it is anticipated that it will again exceed the region’s average growth projected at 2.7%. Last year’s recession halted almost two decades of growth that averaged 4% per year.
“Expectations of a sluggish recovery in sub-Saharan Africa reflect persistent Covid-19 outbreaks in several economies that have inhibited the resumption of economic activity,” a World Bank statement said.