Economy and GDP of Tanzania

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People of Tanzania and President Jakaya Kikwete

Solid macroeconomic policies supported real GDP growth of more than 6% in 2005. The economy depends heavily on agriculture, which accounts for almost half of GDP, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area.

Industry traditionally featured the processing of agricultural products and light consumer goods. Long-term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals, led by gold. Recent banking reforms have helped increase private-sector growth.

Facts on the Economy of Tanzania and Living conditions of Tanzania

GDP of Tanzania (purchasing power parity):	$26.85 billion (2005 est.)
GDP of Tanzania (official exchange rate):	$11.62 billion (2005 est.)
GDP of Tanzania - real growth rate:	6.8% (2005 est.)
GDP - per capita (PPP):	$700 (2005 est.)
GDP of Tanzania - composition by sector:	agriculture: 43.2% industry: 17.2% services: 39.6% (2004 est.)
Labor force:	19.22 million (2005 est.)
Labor force - by occupation:	agriculture: 80% industry and services: 20% (2002 est.)
Unemployment rate:	NA%
Population below poverty line:	36% (2002 est.)
Household income or consumption by percentage share:	lowest 10%: 2.8% highest 10%: 30.1% (1993)
Distribution of family income - Gini index:	38.2 (1993)
Inflation rate (consumer prices):	4% (2005 est.)
Investment (gross fixed):	19.5% of GDP (2005 est.)
Budget of Tanzania:	revenues: $2.235 billion expenditures: $2.669 billion; including capital expenditures of $NA (2005 est.)

Public debt:	5% of GDP (2005 est.)
Agriculture - products in Tanzania:	coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats
Industries in Tanzania:	agricultural processing (sugar, beer, cigarettes, sisal twine); diamond, gold, and iron mining, salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer
Industrial production growth rate in Tanzania:	8.4% (1999 est.)
Electricity - production:	3.152 billion kWh (2003)

Electricity - production by source in Tanzania:	fossil fuel: 18.9% hydro: 81.1% nuclear: 0% other: 0% (2001)
Electricity - consumption:	2.959 billion kWh (2003)
Electricity - exports:	0 kWh (2003)
Electricity - imports:	28 million kWh (2003)
Oil - production:	0 bbl/day (2003 est.)
Oil - consumption:	22,000 bbl/day (2003 est.)
Oil - exports:	NA bbl/day
Oil - imports:	NA bbl/day
Oil - proved reserves:	0 bbl (1 January 2002)
Natural gas - production:	0 cu m (2003 est.)
Natural gas - consumption:	0 cu m (2003 est.)
Natural gas - proved reserves:	22.65 billion cu m (1 January 2002)
Current account balance:	-$508 million (2005 est.)
Exports:	$1.581 billion f.o.b. (2005 est.)
Exports - commodities:	gold, coffee, cashew nuts, manufactures, cotton
Exports - partners of Tanzania:	India 8.9%, Spain 8.2%, Netherlands 6.4%, Japan 5.7%, UK 4.9%, China 4.7%, Kenya 4.6% (2004)
Imports:	$2.391 billion f.o.b. (2005 est.)
Imports - commodities:	consumer goods, machinery and transportation equipment, industrial raw materials, crude oil
Imports - partners:	South Africa 12.6%, China 7.8%, India 6.3%, Kenya 5.4%, UAE 5.3%, US 4.8%, UK 4.6% (2004)
Reserves of foreign exchange and gold:	$2.335 billion (2005 est.)
Debt - external:	$7.95 billion (2005 est.)
Economic aid - recipient:	$1.2 billion (2001)
Currency (code):	Tanzanian shilling (TZS)
Currency code:	TZS
Exchange rates:	Tanzanian shillings per US dollar - 1,128.93 (2005), 1,089.33 (2004), 1,038.42 (2003), 966.58 (2002), 876.41 (2001)
Fiscal year:	1 July - 30 June