Tanzania Economy 2007

Economy - overview:
Tanzania is one of the poorest countries in the world. The economy depends heavily on agriculture, which accounts for almost half of GDP, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry traditionally featured the processing of agricultural products and light consumer goods. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Long-term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals led by gold. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of nearly 6% in 2006.

GDP (purchasing power parity):
$29.64 billion (2006 est.)

GDP (official exchange rate):
$13.14 billion (2006 est.)

GDP - real growth rate:
5.9% (2006 est.)

GDP - per capita (PPP):
$800 (2006 est.)

GDP - composition by sector:
agriculture: 43.2%
industry: 18.1%
services: 38.7% (2006 est.)

Labor force:
19.35 million (2006 est.)

Labor force - by occupation:
agriculture: 80%
industry and services: 20% (2002 est.)

Unemployment rate:
NA%

Population below poverty line:
36% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 26.9% (2000)

Distribution of family income - Gini index:
34.6 (2000)

Inflation rate (consumer prices):
6.1% (2006 est.)

Investment (gross fixed):
18.2% of GDP (2006 est.)

Budget:
revenues: $2.496 billion
expenditures: $3.094 billion (2006 est.)

Public debt:
27.8% of GDP (2006 est.)

Agriculture - products:
coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats

Industries:
agricultural processing (sugar, beer, cigarettes, sisal twine); diamond, gold, and iron mining, salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer

Industrial production growth rate:
8.4% (1999 est.)

Electricity - production:
1.88 billion kWh (2005)

Electricity - consumption:
1.199 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
136 million kWh (2005)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
23,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Natural gas - proved reserves:
21.73 billion cu m (1 January 2006 est.)

Current account balance:
$-1.754 billion (2006 est.)

Exports:
$1.798 billion f.o.b. (2006 est.)

Exports - commodities:
gold, coffee, cashew nuts, manufactures, cotton

Exports - partners:
China 8.8%, India 8.8%, Netherlands 6.2%, Japan 5.3%, UAE 4.2%, Germany 4.2% (2006)

Imports:
$4.369 billion f.o.b. (2006 est.)

Imports - commodities:
consumer goods, machinery and transportation equipment, industrial raw materials, crude oil

Imports - partners:
South Africa 9.8%, China 9.4%, Kenya 7.8%, India 6.8%, UAE 5.9%, Zambia 5.7% (2006)

Economic aid - recipient:
$1.505 billion (2005)

Reserves of foreign exchange and gold:
$2.281 billion (2006 est.)

Debt - external:
$4.786 billion (2006 est.)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$587.9 million (2005)

Currency (code):
Tanzanian shilling (TZS)

Exchange rates:
Tanzanian shillings per US dollar - 1,251.9 (2006), 1,128.93 (2005), 1,089.33 (2004), 1,038.42 (2003), 966.58 (2002)