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Tanzania Economic Update : Addressing the Impact of COVID-19 (English)

State of the economy: In 2019 growth in Tanzania’s economy was again solid, but this year COVID-19is expected to cut GDP growth at least in half and increase poverty. Growth slowdown in Tanzania’smain trade partners has reduced demand and prices for its agricultural commodities and final manufactured goods, and international travel bans and fear of contracting the virus are expected to inhibit the recovery of tourism, which has been one of the fastest-growing sectors in the economy. Domestic business conditions are expected to deteriorate. The current outlook is highly uncertain,and risks are tilted to the downside especially if global demand remains suppressed or government actions are not strong, well-targeted or sustained. The risks for a more negative growthoutlook than the baseline described above are high. Under a severe local outbreak, Tanzania’s health care system would become heavily strained, and self-imposed social distancing could dampenmuch of the economy. This would likely lead to a delayed economic recovery, and Tanzania would face continued pressures to finance additional health spending to save lives and providesupport to protect livelihoods. Even if the outbreak is contained in Tanzania, a protracted/resurging global health crisis that continues in 2021 could undermine global demand, and thus, the Tanzanian economy. Furthermore, even if the global health crisis is contained and Tanzania’s COVID-19 reported cases also decrease, additional trade and logistics restrictionscould continue disrupting global trade during the recovery. Tanzania’s macroeconomic performance has been strong for the last decade, but the current crisis is an unprecedented shock that requires strong, well-targeted and sustained policy response.

Details

  • Document Date

    2020/06/07

  • Document Type

    Report

  • Report Number

    149267

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Tanzania,

  • Region

    Africa East, Africa,

  • Disclosure Date

    2020/06/08

  • Disclosure Status

    Disclosed

  • Doc Name

    Tanzania Economic Update : Addressing the Impact of COVID-19

  • Keywords

    trade and investment; information and communication technology; small and medium size enterprise; consumer need; digital economy; poverty head count; weights and measure; consumption of durable good; Below the Poverty Line; gross fixed capital formation; account deficit; total tax revenue target; current account deficit; tourism; nominal exchange rate; private sector credit; foreign exchange market; export of gold; implementing policy; adequate financial resources; essential health services; point of entry; population at large; commodity price movements; lower income countries; health care system; global financial stability; lines of credit; demand for import; balance of payment; foreign direct investment; global value chain; transport and energy; income due; impact on poverty; number of adults; service and infrastructure; growth in agriculture; lower secondary school; extreme poverty line; international commercial arbitration; national poverty line; fees and charge; wages and salary; cash transfer scheme; loss of income; country of origin; quality of education; commercial lending rates; import of goods; inflation target; trade and services; water supply facilities; data protection act; engine of growth; rural area; global demand; manufactured goods; health response; mobile money; domestic revenue; external borrowing; domestic demand; poverty trend

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Citation

Tanzania Economic Update : Addressing the Impact of COVID-19 (English). Tanzania economic update,no. 14 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/850721591546081246/Tanzania-Economic-Update-Addressing-the-Impact-of-COVID-19