Tanzania’s economy is on track to grow by 6% in 2025, up from 5.5% in the previous year, according to Planning and Investment Minister Kitila Mkumbo. The minister also projected a narrowing of the budget deficit to 3.0% of GDP in the next fiscal year, down from 3.4%.
The government attributes the positive outlook to improved investor confidence, infrastructure development, and stable macroeconomic policies. “This forecast reflects ongoing efforts to strengthen economic fundamentals and enhance fiscal discipline,” said Mkumbo during a budget presentation on Thursday.
The economic update comes months ahead of Tanzania’s general elections scheduled for October. President Samia Suluhu Hassan is expected to seek a full term after assuming office in 2021 following the passing of President John Magufuli.
Observers note that economic stability and growth will likely be central themes in the upcoming election campaign, as voters assess the government’s performance in managing recovery and development post-pandemic.