Economy - overview Tanzania is one of the poorest countries in the world. The economy is heavily dependent on agriculture, which accounts for 57% of GDP, provides 85% of exports, and employs 90% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry accounts for 17% of GDP and is mainly limited to processing agricultural products and light consumer goods. The economic recovery program announced in mid-1986 has generated notable increases in agricultural production and financial support for the program by bilateral donors. The World Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's deteriorated economic infrastructure. Growth in 1991-97 has featured a pickup in industrial production and a substantial increase in output of minerals, led by gold. Natural gas exploration in the Rufiji Delta looks promising and production could start by 2002. Recent banking reforms have helped increase private sector growth and investment.

GDP purchasing power parity - $21.1 billion (1997 est.)

GDP - real growth rate 4.3% (1997 est.)

GDP - per capita purchasing power parity - $700 (1997 est.)

GDP - composition by sector
agriculture: 57%
industry: 17%
services: 26% (1995 est.)

Inflation rate - consumer price index 15% (1997 est.)

Labor force
total: 13.495 million
by occupation: agriculture 90%, industry and commerce 10% (1995 est.)

Unemployment rate NA%

Budget
revenues: $959 million
expenditures: $1.1 billion, including capital expenditures of $214 million (FY96/97 est.)

Industries primarily agricultural processing (sugar, beer, cigarettes, sisal twine), diamond and gold mining, oil refining, shoes, cement, textiles, wood products, fertilizer, salt

Industrial production growth rate 0.4% (1995 est.)

Electricity - capacity 439,000 kW (1995)

Electricity - production 895 million kWh (1995)

Electricity - consumption per capita 31 kWh (1995)

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

Exports
total value: $760 million (f.o.b., 1996)
commodities: coffee, manufactured goods, cotton, cashew nuts, minerals, tobacco, sisal (1995)
partners: EU, Japan, India, US (1995)

Imports
total value: $1.4 billion (c.i.f., 1996)
commodities: consumer goods, machinery and transportation equipment, crude oil
partners: EU, Kenya, Japan, China, India (1995)

Debt - external $7.9 billion (1997 est.)

Economic aid
recipient: ODA, $NA

Currency 1 Tanzanian shilling (TSh) = 100 cents

Exchange rates Tanzanian shillings (TSh) per US$1 - 631.61 (January 1998), 612.12 (1997), 579.98 (1996), 574.76 (1995), 509.63 (1994), 405.27 (1993)

Fiscal year 1 July - 30 June

NOTE: The information regarding Tanzania on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tanzania Economy 1998 information contained here. All suggestions for corrections of any errors about Tanzania Economy 1998 should be addressed to the CIA.