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The International Monetary Fund (IMF), in its October 2025 Regional Economic Outlook: Sub-Saharan Africa, projects Tanzania’s economy to expand steadily, with GDP growth forecast at 6.0% in 2025 and 6.3% in 2026. Inflation is expected to remain moderate at 3.3% and 3.5%, underscoring stable macroeconomic conditions.
The IMF attributes Tanzania’s robust performance to sound fiscal management, declining public debt, and effective tax reforms that have strengthened domestic revenue mobilization. The country’s overall fiscal deficit is projected to remain contained at –3.0% of GDP, while public debt is expected to fall from 49.6% of GDP in 2025 to 48.3% in 2026, reflecting prudent debt management.
Regionally, Sub-Saharan Africa’s economy is forecast to grow by 4.1% in 2025, with a modest uptick in 2026, supported by ongoing macroeconomic stabilization and reforms. Median inflation in the region has eased to about 4%, though some countries—such as Angola, Ethiopia, Ghana, and Nigeria—are projected to continue experiencing double-digit inflation.
For Tanzania, the IMF highlights the government’s successful tax administration reforms, including the adoption of a risk-based compliance framework, improved data systems, and enhanced case management, which collectively boosted assessed taxable income by nearly 20%. The report also points to renewable energy as a promising sector for blended financing, combining concessional and private capital to sustain investment and long-term growth.
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https://trendsnafrica.com/east-african-countries-buck-the-downward-trends-in-economic-growth-afdb/
Key Takeaways:
- GDP Growth: 6.0% (2025), 6.3% (2026)
- Inflation: 3.3% (2025), 3.5% (2026)
- Fiscal Deficit: –3.0% of GDP
- Public Debt: Declining to 48.3% of GDP by 2026
- Focus Areas: Fiscal discipline, tax reform success, and renewable energy investment opportunities
