Tanzania Economy Profile 2008

Economy - overview

Tanzania is one of the poorest countries in the world. The economy depends heavily on agriculture, which accounts for more than 40% 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. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. 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 and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of nearly 7% in 2007.

GDP (purchasing power parity)

$43.49 billion (2007 est.)

GDP (official exchange rate)

$14.11 billion (2007 est.)

GDP - real growth rate

6.9% (2007 est.)

GDP - per capita (PPP)

$1,100 (2007 est.)

GDP - composition by sector

agriculture: 42.8%
industry: 18.4%
services: 38.7% (2007 est.)

Population below poverty line

36% (2002 est.)

Household income or consumption by percentage share

lowest 10%: 2.9%
highest 10%: 26.9% (2000)

Inflation rate (consumer prices)

7% (2007 est.)

Investment (gross fixed)

18.4% of GDP (2007 est.)

Labor force

19.69 million (2007 est.)

Labor force - by occupation

agriculture: 80%
industry and services: 20% (2002 est.)

Unemployment rate

NA%

Distribution of family income - Gini index

34.6 (2000)

Budget

revenues: $3.124 billion
expenditures: $3.549 billion (2007 est.)

Public debt

23.6% of GDP (2007 est.)

Industries

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

8.2% (2007 est.)

Electricity - production

1.88 billion kWh (2005)

Electricity - consumption

1.199 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

136 million kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

25,000 bbl/day (2005 est.)

Oil - imports

24,800 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

21.73 billion cu m (1 January 2006 est.)

Current Account Balance

-$1.422 billion (2007 est.)

Agriculture - products

coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats

Exports

$2.119 billion f.o.b. (2007 est.)

Exports - commodities

gold, coffee, cashew nuts, manufactures, cotton

Exports - partners

China 8.8%, India 8.8%, Netherlands 6.2%, Japan 5.3%, UAE 4.2%, Germany 4.2% (2006)

Imports

$4.591 billion f.o.b. (2007 est.)

Imports - commodities

consumer goods, machinery and transportation equipment, industrial raw materials, crude oil

Imports - partners

South Africa 9.8%, China 9.4%, Kenya 7.8%, India 6.7%, UAE 5.9%, Zambia 5.7% (2006)

Reserves of foreign exchange and gold

$2.441 billion (31 December 2007 est.)

Debt - external

$4.984 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$587.9 million (2005)

Economic aid - recipient

$1.505 billion (2005)

Currency (code)

Tanzanian shilling (TZS)

Exchange rates

Tanzanian shillings per US dollar - 1,255 (2007), 1,251.9 (2006), 1,128.93 (2005), 1,089.33 (2004), 1,038.42 (2003)

Fiscal year

1 July - 30 June