Tanzania is experiencing sustained economic growth, with Gross Domestic Product (GDP) consistently growing at an average of 7% per annum for the last ten years. This is a result of economic reforms and sound economic policies that were introduced since the second half of the 1990s.
The largest export contributors continue to be primary commodities, particularly gold, coffee, tea, cashew nuts and cotton. At the same time, the volume of manufactured exports has surged in recent years, with the lion’s share of these exports going to markets within the region. Meanwhile, tourism is Tanzania’s main foreign exchange earner.
Over the past two decades, it has been transformed from a centrally planned economy to a market-oriented system through successful implementation of free-market orientated reforms. The Government has encouraged private sector-led growth through the restoration of market forces and less Government intervention in commercial activities. Overall the reforms have resulted in positive growth trends and impressive macro-economic indicator s with inflation rates falling from 27.4% in 1995 to about 3.4% in 2019.