Tanzania: Continuing strong GDP growth

GDP growth was strong in the period 2000-12, with an annual average expansion of +6.7%, which was above the average for Sub-Saharan Africa in all but one of those years. While the growth outlook is favourable, economic policy challenges remain in the short-term.

The country's external accounts also provide a challenge to economic management. Against the background of large current account deficits, which would not be sustainable without

correspondingly large inflows of donor support, accumulation of FX reserves remains limited and import cover will remain below four months in 2013 and 2014. Tanzania's external debt levels and associated

ratios have improved following debt relief programmes under the auspices of HIPC and G8 initiatives, but remain a burden to the country's development needs.