Tanzania’s economy is expected to maintain strong growth in the coming years. According to a World Bank report published on October 2, the country’s gross domestic product (GDP) is projected to grow by 6.1% in 2026 before reaching 6.5% over the medium term.
The outlook is expected to be supported by the private sector, with renewed business activity helping to strengthen economic growth. Prospects also depend on continued fiscal consolidation and reforms aimed at improving the business environment.
Risks from the Global Environment
Despite the positive outlook, Tanzania’s economy remains exposed to several risks.
A prolonged war in the Middle East could push up fuel prices and the cost of agricultural inputs. It could also affect key sectors of the Tanzanian economy, particularly tourism and logistics.
Other uncertainties include the pace of reform implementation, fiscal discipline and the possibility of further external shocks. The country’s vulnerability to climate-related events also remains a risk to economic activity.
Strong Growth Already Recorded in 2025
The forecasts come against a backdrop of solid growth and macroeconomic stability. Tanzania’s economy expanded by 5.9% in 2025, driven in particular by investment in infrastructure and services.
A gradual recovery in private investment, including foreign direct investment, also contributed to the expansion.
At the same time, inflation remained within the Bank of Tanzania’s 3% to 5% target range, reflecting relative price stability.
The Challenge of More Inclusive Growth
Beyond macroeconomic indicators, Tanzania’s next challenge will be to translate economic growth into lasting improvements in living standards and job quality.
The World Bank particularly emphasizes the importance of human capital. Over the long term, investment in education, healthcare and skills will be essential to sustaining growth, creating jobs and reducing poverty.
Continued economic expansion will therefore need to be accompanied by greater investment in human capital to ensure that the benefits of growth reach a broader share of the population.