IMF: Tanzania set for 6.3pc GDP growth after strong 2025 expansion

By Business Insider Reporter

Tanzania’s economy is set for continued robust growth, with the International Monetary Fund (IMF) forecasting real GDP growth of 6.3 percent in 2026 following an estimated 6 percent expansion in 2025.

The IMF has highlighted that Tanzania’s performance stands out in a region navigating challenging global conditions, with growth well above the Sub-Saharan Africa (SSA) average.

Delivering her New Year national address recently, President Dr. Samia Suluhu Hassan said that despite last October’s political challenges, the country maintained strong macroeconomic indicators.

“In 2025, we achieved notable economic milestones: inflation averaged a stable 3.4 percent, economic growth accelerated to 5.8 percent, up from 5.2 percent in 2024, she noted, adding:

“Public debt remained sustainable through strategic refinancing, and foreign exchange reserves rose to US$6.6 billion, covering more than five months of imports – a clear sign of our financial strength and growing investor confidence.”

Tanzania’s economic momentum

IMF says Tanzania’s 2025 performance reflects sustained growth driven by strong investment, structural reforms, and macroeconomic stability. The 2025 GDP growth was among the fastest in SSA while moderate inflation signalled price stability.

Headline inflation in the country rose slightly to 3.5 percent in October 2025, up from 3 percent during the same month last year, the Bank of Tanzania reported in the November Monthly Economic Review.

The central bank attributed the overall price stability to careful monetary management, strong coordination between fiscal and monetary policies, and ongoing reforms to ensure steady domestic food supply.

The modest rise in October was mainly linked to higher prices of a few essential food items, reflecting normal market fluctuations, it noted. Economists say the steady inflation trend is encouraging for households and businesses, as it supports predictable prices while the economy continues to grow.

tourism is one of major forex generators in tanzania

IMF also points out prudent fiscal management, with the overall fiscal balance (including grants) around -3 percent of GDP and public debt declining modestly.

“Policy reforms – strengthened tax administration, improved public financial management, and domestic revenue mobilisation – also insulated Tanzania from external shocks,” it adds.

Growth above regional trends

The IMF projects GDP growth of 6.3 percent in 2026, supported by ongoing investment and structural reforms that boost domestic demand and productive capacity.

By contrast, the SSA region is expected to grow around 4.1 percent in 2025, with a modest acceleration in 2026 amid global uncertainty and uneven commodity recovery.

Tanzania’s above-average growth highlights its economic resilience and reform momentum. Stable inflation, fiscal prudence, and favourable demographics provide a strong foundation for sustained expansion. Experts say policymakers in SSA are expected to focus on deepening reforms, expanding private-sector participation, and building resilience to external shocks to maintain growth and improve living standards.

Selected Economic Indicators

Inflation Rate