The International Monetary Fund (IMF) has released its WORLD ECONOMIC OUTLOOK Report (WEO) 2024, projecting a Gross Domestic Product (GDP) growth of +5.4% and +6% for Tanzania in 2024 and 2025.
Global Economic Growth and Inflation in 2024 and 2025
Global growth is expected to remain stable yet underwhelming. At 3.2% in 2024 and 2025, the growth projection is virtually unchanged from those in both the July 2024 World Economic Outlook Update and the April 2024 World Economic Outlook.
However, notable revisions have taken place beneath the surface, with upgrades to the forecast for the United States offsetting downgrades to those for other advanced economies—in particular, the largest European countries.
Likewise, in emerging markets and developing economies, disruptions to the production and shipping of commodities—especially oil—conflicts, civil unrest, and extreme weather events have led to downward revisions to the outlook for the Middle East and Central Asia and that for sub-Saharan Africa.
These have been compensated for by upgrades to the forecast for emerging Asia, where surging demand for semiconductors and electronics, driven by significant investments in artificial intelligence, has bolstered growth.
Meanwhile, the global battle against inflation has largely been won, the IMF explains, even though price pressures persist in some countries.
After peaking at 9.4% year over year in the third quarter of 2022, headline inflation rates are now projected to reach 3.5 percent by the end of 2025, below the average level of 3.6% between 2000 and 2019.
Global headline inflation is expected to fall from an annual average of 6.7% in 2023 to 5.8% in 2024 and 4.3% in 2025, with advanced economies returning to their inflation targets sooner than emerging markets and developing economies.
Tanzania Economic Growth and Inflation in 2024 and 2025
According to the IMF, Tanzania’s economy grew by 4.7% in 2022 and 5.1% in 2023, with an inflation rate of 4.0% in both years.
The IMF projects Tanzania’s GDP growth to accelerate to 5.4% in 2024, 6.0% in 2025, and 6.5% by 2029.
During this period, the inflation rate is expected to decrease to 3.0% in 2024, rise slightly to 3.7% in 2025, and return to 4.0% in 2029.
