ON Saturday Tanzanians woke up to the good news regarding the growth of the country’s Gross Domestic Product (GDP) to 85.42 billion US dollars in the year 2023, up from77.06 and 69.94billion US dollars in the years 2022 and 2021 respectively.
According to the latest figure availed to the public by the International Monetary Fund (IMF), Tanzania economy now features in the list of top ten biggest economies in Sub- Saharan Africa in 2023.
The statistics shows that Tanzania is now number six in the top ten countries with big economies in Sub-Saharan Africa, surpassing some European countries.
President Samia Suluhu Hassan, in this new economic development, deserves kudos since the growth recorded has come in just two years of her leadership in office.
It would be recalled that immediately after ascending to the top most leadership office, President Samia made tremendous efforts in attracting business and investments through various policies and guidelines.
The Head of State has often been issuing guidence, insisting on the government’s determination to build the economy through creation of conducive environment for business and investments.
We have witnessed President Samia conducting a number of foreign trips as well as hosting some foreign leaders where Tanzania has been marketing the available business opportunities.
In April 2021, President Samia demanded sweeping reforms in the investment sector, as part of her government’s grand plan to restore trust of investors. Today, her efforts are now paying off and everybody can now attest to that.
Economists state that benefits provided by the state when GDP rises is that inclusive growth brings wider material gains. Growth creates wealth, some of which goes directly into the pockets of employers and workers, both in public and private sector that help to improve their wellbeing.
As people earn higher incomes and spend more money, it enables people to exit poverty and gain improved living standards.
Impressive economic growth simply means an increase in real GDP that translates into an increase in the value of national output, income and expenditure.
GDP growth, as it is the case now, means that the government will have the ability to devote more resources to areas like health care and education, amongst key priority areas that touches each Tanzanian.
Economists further says this achievement will increase state capacity to the supply of public goods because when an economy grows, the government can tax that revenue and gain the capacity and resources needed to provide the public goods and services that their citizens need, like healthcare, education, social protection and basic public services.
In some sense, higher GDP equates to greater human progress, because it means more valuable goods and services have been created.
However, the same economists warn that when the country’s population increases, pushing GDP up, more money will be spent by the government to deliver services. All in all, as Tanzanians, we have a reason to rejoice.