GDP on record 7.9 pc growth

GROSS Domestic Product grew by 7.9 per cent in the second quarter of 2016, beating by far the 5.8 per cent rate recorded in the corresponding period last year.

The National Bureau of Statistics (NBS), in its quarterly economic estimates released in Dar es Salaam yesterday, put the country’s GDP at constant prices in absolute terms for the period at 11.7trn/- compared to 10.9trn/- of last year.

NBS Director General, Albina Chuwa, told reporters that the projected annual GDP at constant prices is estimated at 47.2tri/- in 2016, up from the actual 44.1trn/- in 2015.

Besides the quarterly GDPs, the statistics body has the mandate to compile semiannual and annual GDPs, as well. According to Dr Chuwa, the annual GDP report would be released on December 30, 2016.

The quarterly GDP is measured as the value of goods and services produced by residents in three-month periods of January-March, April-June, July-September and October-December.

The NBS boss noted that the second quarterly GDP at current prices for 2016 in absolute terms was 26.7trn/- compared to 23trn/- attained in the same quarter last year, adding that the annual GDP at current prices is estimated at 104.4trn/- this year compared to 90.8trn/- in 2015.

The GDP estimates came as the World Bank released its bi-annually analysis of economic trends and data for the region yesterday, suggesting that the economies of African countries are growing at divergent speeds.

“While many countries are registering a sharp slippage in economic growth, some others - Ethiopia, Rwanda, and Tanzania - have continued to post annual average growth rates of over six per cent,’’ reads the report.

“Our analysis shows that the more resilient growth performers tend to have stronger macroeconomic policy frameworks, better business regulatory environment, more diverse structure of exports and more effective institutions,” said World Bank Chief Economist for Africa, Albert Zeufack.

According to Dr chuwa, the agriculture sector which includes production of crops, livestock, forestry and fishing grew at 3.2 per cent in the period under review compared to a 1.9 per cent decline in the corresponding quarter of 2015.

“The impressive growth is attributed to favourable rainfall for crop production in most of production areas and extension services provided to farmers during the period under review,’’ she said.

The NBS review further shows that mining and quarrying activities expanded at 20.5 per cent in the second quarter of 2016 compared to 11.2 per cent during the similar period of 2015.

Dr Chuwa said the growth was mainly owing to an increase in production of natural gas, diamond, Tanzanite, Salt, Gold, Copper and Silver. The review also indicates that manufacturing activity grew by 9.1 per cent compared to 5.2 per cent last year, attributing the expansion production of food, beverage, tobacco, textiles, cement, printing, chemicals and pharmaceuticals, basic metals and furniture products.

Other sectors that grew with their expansion rates in brackets include electricity (7.1 per cent), construction (9 per cent), wholesale and retail trade, repair of motor vehicles, motorcycles, personal and household goods (5.2 per cent), transportation and storage (30.6 per cent) and accommodation and food services (2.5 per cent).

Others are financial intermediation and insurance (12.5 per cent), public administration and defence (7.3 per cent), education (8 per cent), health (5.7 per cent), recreation (6.9 per cent) as well as activities of households as employer (3.1 per cent).

Recently, the Bank of Tanzania (BoT) Governor, Professor Beno Ndulu, said the nation’s economy was on track to attain the 7.2 per cent growth as projected for 2016, thanks to impressive growth in the key economic sectors.

Prof Ndulu said different economic indicators were showing that the country’s economy would grow in 2016. The indicators include power generation, which has increased, helping to boost economic growth.