ECONOMIC OVERVIEW
|
The Gross Domestic Product in real terms grew by 6.8 percent in 2005 compared to 6.7 percent in 2004. The increase in the growth
|
rate was mainly attributed to an increase in the growth of whole sale and retail trade, hotels and restaurants (including tourism); mining and quarrying; manufacturing; construction; and transport and communication sectors. Likewise, the growth rates of electricity and water, financial and business services, public administration and other services sectors increased.
In 2005, Gross Domestic Product amounted to shs 13, 063,317 million at current prices or shs. 2,237,079 million at 1992 constant prices. The population of Tanzania Mainland was estimated at 36.2 million in 2005. The per capita income was shs. 360,865 in 2005 compared to shs. 319,754 in 2004 at current prices, equivalent to an increase of 12.9 percent. Furthermore per capita income, at 1992 constant prices was shs. 61,798 in 2005, compared to shs. 59,335 in 2004, equivalent to an increase of 4.2 percent.
The agriculture sector grew by 5.2 percent in 2005 compared to 5.8 percent in 2004. The decrease in the growth rate was due to a decline in production in the crop and livestock sub-sectors. The declined was from 6.0 and 4.8 percents in 2004 to 5.2 and 4.2 percents in 2005 respectively. Growth rates of fishing, forestry and hunting sub-sectors increased from 6.7 and 3.8 percents in 2004 to 7.3 and 4.5 percent in 2005 respectively. Despite the decline in the growth rate of agriculture sector, its contribution to GDP remained high compared to other sectors. In 2005, the agriculture sector contributed 45.6 percent to GDP compared to 46.3 percent in 2004.
The growth rate of manufacturing sector was 9.0 percent in 2005 compared to 8.6 percent in 2004. The growth was attributed to an increase in production in some industries particularly, cement, aluminium and iron sheets. The contribution of the sector to GDP increased from 8.8 percent in 2004 to 9.0 percent in 2005.
The growth rate of mining and quarrying sector increased from 15.4 percent in 2004 to 15.7 percent in 2005. The increase in the growth rate of the sector was attributed to new investments in Tulawaka gold mines in Biharamulo District. The contribution of the sector to GDP increased from 3.2 percent in 2004 to 3.5 percent in 2005.
The trade sector, which includes wholesale and retail trade, hotels and restaurants (tourism), grew by 8.2 percent in 2005 compared to 7.8 percent in 2004. The increase in the growth rate was mainly attributed to newly opened hotels and improved business environment. The contribution of the sector to GDP increased from 16.9 percent in 2004 to 17.2 percent in 2005.
In 2005, the growth rate of the construction sector was 11.9 percent compared to 10.8 percent in 2004. The growth of the sector was attributed to the increase in construction of residential and non residential buildings; roads and bridges; and land improvement. This sector contributed 5.7 percent to the overall GDP in 2005 compared to 5.4 percent in 2004.
In 2005, transport and communication sector grew by 6.4 percent compared to 6.0 percent in 2004. The growth rate was attributed to improvement in infrastructure for transportation and communication services, particularly telecommunication. Nonetheless, the sector’s contribution to GDP in 2005 remained at 5.4 percent, the same as in 2004.
The growth rate of electricity and water sector was 5.1 percent in 2005 compared to 4.5 percent in 2004. The growth in electricity and water sub sectors were from 4.7 and 2.8 percent in 2004 to 5.3 and 3.4 percent in 2005 respectively. The sector’s contribution to GDP remained at 1.6 percent as was in 2004 and 2003.
Finance and business services sector grew by 5.3 percent in 2005 compared to 4.4 percent in 2004. The increase in the growth rate was due to an increase in the growth of the finance and insurance; real estate; and business services sub-sectors at 5.7; 5.0; and 6.1 percents in 2005 compared to 4.4; 4.3; and 5.5 percents in 2004 respectively. However, the sector’s contribution to GDP declined from 9.7 percent in 2004 to 9.6 percent in 2005
The growth rate of public administration and other services sector increased from 4.3 percent in 2004 to 5.1 percent in 2005. The increase in the growth rate of the sector was attributed to an increase in the growth rate of public administration sub-sector from 2.8 percent in 2004 to 4.7 percent in 2005. Education, health and other services sub-sectors grew by 6.3, 5.7, and 4.9 percent in 2005 compared to those attained in 2004 of 6.6, 6.0, and 5.8 percent respectively. The sector’s contribution to GDP declined slightly from 7.1 percent in 2004 to 7.0 percent in 2005.
|
