Tanzania’s economy grew by 5.4 percent in the first quarter of 2025 (July–September), reflecting continued stability and strong performance in key sectors, according to the International Monetary Fund (IMF).
The IMF team, led by Mr. Nicolas Blancher, concluded a week-long visit to Tanzania from September 17–24, during which they assessed the country’s economic performance, prospects, and the implementation of ongoing reforms.
“In the first quarter of 2025, the Tanzanian economy remained resilient. Inflation stayed low at 3.4 percent in August, while mining, agriculture, manufacturing, and construction drove growth,” Mr. Blancher said in a statement published on the IMF website.
The IMF report highlighted positive developments, including revenue reforms under the Medium-Term Revenue Strategy, which are expected to increase government revenue and support investment in social sectors.
The central bank’s measures, including maintaining inflation within the 3–5 percent target range and lowering the key interest rate to 5.75 percent, have helped stimulate economic activity. Improvements in the foreign exchange market have also increased liquidity and narrowed the gap between official and parallel rates.
Tanzania’s current account deficit fell to 2.5 percent of GDP in the 2024/25 fiscal year, supported by mineral exports, agricultural products, and tourism.
Foreign reserves reached USD 6.2 billion by July 2025, sufficient for four months of imports.
The IMF stressed the need to accelerate reforms to achieve Tanzania’s 2050 Development Vision, including investments in education, health, youth employment, and climate change initiatives with support from development partners.
The IMF team thanked the Government of Tanzania, development partners, the private sector, and civil society for their cooperation and constructive discussions during the visit.
