Bloomberg News

Tanzanian Economy Grows 7.1% Through March Powered by Mining

August 03, 2012

Tanzania’s economy expanded 7.1 percent in the first quarter, powered by mining and electricity production, the National Bureau of Statistics said.

Growth in East Africa’s second-biggest economy accelerated from 6.1 percent last year as mining and quarrying output increased by 14.3 percent from 0.8 percent, the Dar es Salaam- based agency said in a statement published on its website today. Power generation rose by 9 percent from 6.6 percent, it said.

Growth quickened from 6.5 percent in the fourth quarter of last year, the agency said May 7.

“This is a good indicator that the economy has started to pick up,” said Yonoh Mtengule, chief economist at National Bank of Commerce Ltd., the Tanzanian unit unit of Absa Group Ltd. (ASA)

Sustained growth will depend on electricity supply and the coming dry season could hamper hydropower generation, he said in a phone interview from Dar es Salaam today. “The economy may expand in the second quarter, but the trend may not continue in the third and fourth quarters depending on power supplies,” he said.

Gold output more than doubled to 16,736 kilograms in the three months through March, while diamond production rose more than fivefold to 57,330 carats, the statistics agency said.

Growth in transport and communications increased to 16.4 percent in the first quarter from 15.1 percent, while the financial industry grew 15 versus 10 percent, it said. Construction accelerated to 3.7 percent from 0.4 percent, and manufacturing was little changed at 4.8 percent compared with 4.6 percent previously.

To contact the reporter on this story: David Malingha Doya in Dar es Salaam at dmalingha@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net


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