This archive report was first published on 9 June 2020.
Published on June 9, 2020, the World Bank warned that Tanzania's economic growth will decline sharply in 2020 due to the impact of COVID-19. Preliminary simulations indicate that the decrease in growth could potentially place 500,000 Tanzanians below the poverty line.
The country witnessed solid growth in 2019, with a gross domestic product of 6.9%. However, the COVID-19 pandemic has led to border closures, international travel bans, and measures to curb the spread of the virus, battering the tourism sector. Tour operators anticipate an 80% contraction in revenues with mild recoveries expected in 2021.
The World Bank fears that the COVID-19 pandemic will spark the first recession in Sub-Saharan Africa in 25 years. In April, the Bank predicted SSA regional growth will decline from 2.4% reported in 2019.
The Bank recommends strengthening health response and transparency to save lives. In addition, the Tanzanian authorities should protect jobs and MSMEs by providing financial aid to bankrupt firms and avoid destruction of productive capacity. There should be a focused social action fund to the informal urban economy who are the most vulnerable households.
