Tanzania’s Prime Minister Kassim Majaliwa has said that the country’s economy grew by about 7.1 percent last year, surpassing the revised government forecast. He attributed the economic growth to increased mining activity.
“Latest data […] shows that the country’s gross domestic product grew 7.1 percent in the period between January and December 2017, compared to a GDP growth of 7.0 percent in 2016,” Majaliwa said.
He also said the GDP growth for the full-year in 2017 was boosted by mining and quarrying at 17.5 percent, transport and storage at 16.6 percent, and construction at 14.7 percent.
The World Bank reduced its prediction for the country’s full-year GDP growth to 6.6 percent in November because of declining public spending and private sector credit.
“There appears to have been an overall deterioration in business sentiment due to the perceived risks resulting from the unpredictability of policy actions,” the World Bank said in its economic update on Tanzania in November.
However, the country is committed to increasing public investment in infrastructure projects including the standard gauge railway, port expansion, and new roads. Still, some investors are concerned about some of the government’s policies.
