Tanzania expects economic growth to reach 6% in 2025.
According to a report submitted by the Minister of Finance and the Governor of the Central Bank to the International Monetary Fund (IMF), this target is anticipated to be achieved following a projected 5.4% growth in 2024. However, despite these optimistic expectations, the country faces potential challenges, including regional conflicts, fluctuating commodity prices, global economic slowdown, and natural disasters caused by climate change.
Factors contributing to the positive economic outlook include inflation remaining within the target range of 5% and fiscal consolidation supporting growth. During the 2023/24 fiscal year, the current account deficit decreased due to an increase in service exports and a reduction in imports. Pressures on the foreign exchange market were eased by seasonal current account movements, sound monetary policies, and flexible exchange rate practices.
This growth forecast comes at a time when Tanzania is focusing on strengthening its economic reforms and resilience against global challenges.
