The rebasing of the economy last year, which involved revising national accounts, has created a new economic outlook of the country.
Among other things, the rebasing has expanded Tanzania’s output by over 32 per cent. This is after the new calculation of the Gross Domestic Product (GDP) incorporated latest developments such as the discovery of gas and prospects of finding oil reserves.
Another decisive factor has been the on-going mobile phone revolution. Our GDP, which was estimated to be 53trn/- in 2013, has now jumped to 70-72trn/-.
In simple words, the national economy is bigger than it was previously thought. The development also shows that Tanzania is now close to achieve middle income status.
The average per capita income is now estimated to be almost US$1,000.The World Bank classifies middle income economies as nations that have a per-capita gross national income of between US$1,036 and US$12,615.
In its latest Global Competitiveness Index (GCI), which is an annual assessment of the factors driving productivity and prosperity in the world, the World Economic Forum (WEF) puts our GDP per capital at US$1,006.
In determining the new national economic figures, the National Bureau of Statistics (NBS) changed the base year for calculations to 2007 from 2001. A good example of the changes is the country’s GDP growth for 2013 that was consequently revised up to 7.3 per cent from the previous rate of seven per cent.
The other big outcome of the rebasing has been the impression that economic growth has trickled down to the poor. Attributes of positive economic growth include competitiveness of the economy and prosperity of the people, which currently are blue sky thinking in Tanzania.
Whereas its 2005 GCI ranking was 100th in the world, it’s now 120th. According to WEF findings, Tanzania’s efforts to tame poverty continue to be thwarted by low productivity and wanting attractiveness of the national economy.
Factors letting us down are many but the main ones include a poor education system, infrastructure nightmares, cancerous corruption and chronic red tape in public institutions.
In its January Tanzania Economic Update, the World Bank says that currently 40 per cent of Tanzania’s adult population earns less than US$1.25 a day.
Going by WEF estimate of the country’s population of 47.7 million, it means that nearly 19.1 million people cannot afford two decent meals in a day.
The fact that Tanzania recorded remarkable growth that averaged seven per cent before the rebasing over the past 15 years bears witness to the country’s impressive economic potential.
A growing labour force and a large and emerging consumer market hold the promise of significant further growth opportunities. However, myriad challenges need to be addressed in order to reap these potential gains.
If Tanzania’s addresses issues inhibiting its competitiveness as portrayed in the 2015-2016 GCI, its economic growth will not only be more equitable but also broad based. And as we reported this week, addressing these issues should top the economic agenda of the next government.
SOURCE: THE GUARDIAN
Among other things, the rebasing has expanded Tanzania’s output by over 32 per cent. This is after the new calculation of the Gross Domestic Product (GDP) incorporated latest developments such as the discovery of gas and prospects of finding oil reserves.
Another decisive factor has been the on-going mobile phone revolution. Our GDP, which was estimated to be 53trn/- in 2013, has now jumped to 70-72trn/-.
In simple words, the national economy is bigger than it was previously thought. The development also shows that Tanzania is now close to achieve middle income status.
The average per capita income is now estimated to be almost US$1,000.The World Bank classifies middle income economies as nations that have a per-capita gross national income of between US$1,036 and US$12,615.
In its latest Global Competitiveness Index (GCI), which is an annual assessment of the factors driving productivity and prosperity in the world, the World Economic Forum (WEF) puts our GDP per capital at US$1,006.
In determining the new national economic figures, the National Bureau of Statistics (NBS) changed the base year for calculations to 2007 from 2001. A good example of the changes is the country’s GDP growth for 2013 that was consequently revised up to 7.3 per cent from the previous rate of seven per cent.
In determining the new national economic figures, the National Bureau of Statistics (NBS) changed the base year for calculations to 2007 from 2001. A good example of the changes is the country’s GDP growth for 2013 that was consequently revised up to 7.3 per cent from the previous rate of seven per cent.
The other big outcome of the rebasing has been the impression that economic growth has trickled down to the poor. Attributes of positive economic growth include competitiveness of the economy and prosperity of the people, which currently are blue sky thinking in Tanzania.
Whereas its 2005 GCI ranking was 100th in the world, it’s now 120th. According to WEF findings, Tanzania’s efforts to tame poverty continue to be thwarted by low productivity and wanting attractiveness of the national economy.
Factors letting us down are many but the main ones include a poor education system, infrastructure nightmares, cancerous corruption and chronic red tape in public institutions.
In its January Tanzania Economic Update, the World Bank says that currently 40 per cent of Tanzania’s adult population earns less than US$1.25 a day.
Going by WEF estimate of the country’s population of 47.7 million, it means that nearly 19.1 million people cannot afford two decent meals in a day.
The fact that Tanzania recorded remarkable growth that averaged seven per cent before the rebasing over the past 15 years bears witness to the country’s impressive economic potential.
A growing labour force and a large and emerging consumer market hold the promise of significant further growth opportunities. However, myriad challenges need to be addressed in order to reap these potential gains.
If Tanzania’s addresses issues inhibiting its competitiveness as portrayed in the 2015-2016 GCI, its economic growth will not only be more equitable but also broad based. And as we reported this week, addressing these issues should top the economic agenda of the next government.
SOURCE: THE GUARDIAN
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