Tanzania: UN Reports Third Fastest Growing Economy in Africa
Arusha. This year, Tanzania will have the third-fastest growing economy in Africa.
The East African nation will lag behind Cote d’Ivoire and Rwanda, according to a report from the United Nations.
According to projections, Cote d’Ivoire, the world’s largest cocoa producer (30 percent), will experience a 6.5 percent increase this year.
Rwanda’s GDP will increase by 7.8 percent in 2023 as a result of successful technological transformation and recent foreign direct investment.
Partner states of the East African Community (EAC) Uganda and mineral-rich DR Congo would experience modest growth in 2023.
The report focusing on the 30 largest African economies predicts that Tanzania’s economy will grow by 5.6% this year.
Using the current exchange rate, the World Bank has ranked Tanzania as the tenth wealthiest country in Africa by total gross domestic product (GDP).
Following Cote d’Ivoire, Ghana, Kenya, Ethiopia, Morocco, and Algeria in succession is Algeria.
South Africa and Egypt follow Nigeria as the continent’s largest economies.
Tanzania is not among the top 10 economies on the African continent based on purchasing power parity (PPP) GDP.
Although Tanzania, alongside Cote d’Ivoire and Rwanda, will experience rapid economic expansion, the situation on the continent will be somewhat different.
The United Nations predicts that several factors will hurt Africa’s economic growth in 2023.
The growth rate is expected to decline from 4.1% in the prior year (2022) to 3.8% this year (2023).
Exports will continue to decline as investors remain reluctant to take financial risks elsewhere.
While growth in West Africa is anticipated to increase in 2023, it is anticipated to remain stable in East and Central Africa.
North and Southern Africa, the continent’s two largest economies, will experience a decline in growth.
ALSO READ: Dar es Salaam Ranks 85th in Global Wealth and 12th in Africa
These are attributed to a significant rise in global inflation, higher borrowing costs, and the effects of climate change.
Positive economic growth in Africa during the period will necessitate strong performance from the largest corporations.
Despite the security issues in its eastern region, DR Congo will have one of the continent’s fastest growth rates in 2023 due to increased mining.
The report seen by The Citizen stated, “While there are several risks to the country’s economic growth rate, the positives are expected to far outweigh the negatives.”
The economic outlook for Uganda, whose total GDP in 2021 was $40.5 billion, will remain challenging.
According to projections, the EAC member country will experience a modest economic expansion in 2023.
Despite being one of the continent’s seven strongest economies, Kenya’s economic outlook is uncertain.
According to the report, this has prompted several company CEOs to seek spending reductions to combat the escalating economic issues.
The recent cessation of hostilities in Tigray province will serve as the foundation for Ethiopia’s hopes of regaining its former growth rate.
ALSO READ: European Parliament Condemns Uganda’s Anti-Gay Bill
A ceasefire put an end to the war in November of last year, “which should result in an economic boost for the country in 2023.”
South Africa, the most developed economy in Africa with a massive 25 percent increase in GDP in 2021, has been courting disaster.
The lack of stability in the electricity supply is currently one of the greatest challenges facing South Africa, with rolling blackouts affecting both residents and businesses.
The International Monetary Fund (IMF) recently praised Morocco, the economic titan of the Maghreb, for its economic success.
The Bretton Woods Institution predicts that neither drought, war, nor inflation will affect the country’s growth rate of three percent.
HEY READER. PLEASE SUPPORT THIS SITE BY CLICKING ADS. DON’T FORGET TO HIT THE NOTIFICATION BELL FOR MORE UPDATES AROUND THE GLOBE.
