Overview: Tanzania is one of the poorest countries in the world. The economy is heavily dependent on agriculture, which accounts for about 40% of GDP, provides 85% of exports, and employs 90% of the work force. Recurring drought has added to poor economic performance by reducing food production and increasing the cost of imports. Industry accounts for about 10% of GDP and is limited to processing farm products and light consumer goods. The economic recovery program announced in mid-1986 has produced some positive results. Most notable are a major currency devaluation (November 1988), incentives for private investment, reduction in the inflation rate, and the willingness of the World Bank and the International Monetary Fund to provide credits.

GDP: $4.96 billion, per capita $258; real growth rate 3.9% (FY87)

Inflation rate (consumer prices): 29.9% (1987)

Unemployment rate: NA%

Budget: revenues $892 million; expenditures $1,017 million, including capital expenditures of $359.5 million (FY85)

Exports: $411 million (f.o.b., 1987); @m5commodities--coffee, cotton, sisal, cashew nuts, meat, tobacco, tea, diamonds, coconut products, pyrethrum, cloves (Zanzibar); @m5partners--FRG, UK, US, Netherlands, Japan

Imports: $1.15 billion (c.i.f., 1987); @m5commodities--manufactured goods, machinery and transportation equipment, cotton piece goods, crude oil, foodstuffs; @m5partners--FRG, UK, US, Iran, Japan, Italy

External debt: $5 billion (December 1988)

Industrial production: growth rate 2.0% (1987)

Electricity: 401,000 kW capacity; 895 million kWh produced, 35 kWh per capita (1988)

Industries: primarily agricultural processing (sugar, beer, cigarettes, sisal twine), diamond mine, oil refinery, shoes, cement, textiles, wood products, fertilizer

Agriculture: cotton, coffee, sisal, pyrethrum (insecticide made from chrysanthemums), vegetables, fruits, and grain on the mainland; cloves and coconuts on Zanzibar

Aid: NA

Currency: Tanzanian shilling (plural--shillings); 1 Tanzanian shilling (TSh) = 100 cents

Exchange rates: Tanzanian shillings (TSh) per US$1--127.901 (January 1989), 99.292 (1988), 64.260 (1987), 32.698 (1986), 17.472 (1985)

Fiscal year: 1 July-30 June

NOTE: The information regarding Tanzania on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tanzania Economy 1989 information contained here. All suggestions for corrections of any errors about Tanzania Economy 1989 should be addressed to the CIA.