Tanzania’s economic growth has been robust and amongst the highest in the region at an annual average rate of 6.8% from 2010-2015, which continued to improve to 7.0% in 2016. Economic growth is forecast to reach 7.1% in 2017, significantly higher than its regional counterparts, with Kenya’s GDP growth for the same period projected to be at 5.9%.
Leading up to the FY2016/17 national budget speech in June last year, there was a sense among analysts that the Tanzanian Treasury would be presenting an austerity-focused national budget in a bid to restrain the gradual rise in levels of government debt over the past few years. But instead, the Treasury announced a significant public spending increase of 30% year-on-year.
Tanzania is one of the beneficiaries of the post-2009 global financial crisis investment hedging initiatives by developed economies and institutional investors. Consequently, Tanzania has experienced remarkable economic growth over the past 5 years despite the global economic downturn and ongoing uncertainty.