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Construction drives Tanzania's economic growth

Tuesday August 06 2019
jenga

According to National Bureau of Statistics, Tanzania's construction sector recorded a growth rate of 13.2 per cent in the first quarter of 2019. FILE PHOTO | NMG

By DOROTHY NDALU

Tanzania’s economic growth slowed to 6.6 per cent in the first quarter of 2019 from 7.5 per cent in the same period last year, the National Bureau of Statistics has said.

According to the NBS, construction, is the biggest driver of gross domestic product growth, recorded a growth rate of 13.2 per cent in the first quarter of 2019, compared with 15.6 per cent in the corresponding quarter of 2018.

The growth was attributed to an increase in local production of construction materials such as cement, iron and steel. These were followed by transport and storage at 11.1 per cent while mining and quarrying were at 10 per cent.

However, growth in the mining sector was the result of sustained government interventions for two years now, and rebounded to 10 per cent from a 5.7 per cent cline during the same period in the previous year.

The growth was mainly due to an increase in production of gold, coal, and diamond.

Gold production increased to 8,656.16 kg from 8,654.97 kg while production of coal rose to 205,044.74 tonnes in the first quarter of 2019 from 129,873.48 tonnes last year.

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The growth rate of crop output decreased to 6 per cent compared with a 8.9 per cent increase in the corresponding quarter of 2018. This was attributed to a decline of rainfall received during the short rains season.

The information and communication sector grew 9.6 per cent compared with 14.9 per cent in the corresponding quarter of the previous year.

This was attributed to an increase in airtime used by mobile phone customers and the expansion of broadcasting and Internet services in the country.

Manufacturing saw a growth rate of 4.8 per cent in the fourth quarter of 2019 compared with 5.3 per cent in a similar period of 2018.

The growth was attributed to an increase in the production of industrial goods in general. according to NBS.

Art, entertainment and the recreation sector grew 7.4 per cent in first quarter compared with 12.8 per cent in the corresponding quarter of 2018.

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