Tanzania middle income country status and implications for future economic growth strategies

Abstract

Tanzania, having attained a gross national income per capita equivalent to $1,080 graduated from a low-income country to a lower-middle income country, which had a threshold of $1,036 in year 2020. The lower-middle income status is an important milestone for Tanzania and Tanzanians have all the reasons to celebrate, partly because research shows that countries may take many years to move from one category to the other, but having attained the (lower) middle-income country status level, well before year 2025 as envisioned in the Tanzania Development Vision 2025. This paper looks at the trends in some of key macroeconomic data related to this development and draws implications for future economic growth strategies to sustain this achievement and the drive the country towards an upper-middle income country status.