DAR ES SALAAM, April 2 (Xinhua) -- Tanzania's economy has continued to demonstrate resilience in the first quarter of 2026 despite rising global uncertainties linked to geopolitical tensions in the Middle East, a senior official said on Thursday.
Yamungu Kayandabila, deputy governor of the Bank of Tanzania responsible for economic and financial policies, said the country recorded strong growth in the first quarter of 2026, supported by key sectors including construction, agriculture, tourism and financial services.
Economic growth was estimated at 6.2 percent in mainland Tanzania and 6.7 percent in Zanzibar, with projections remaining robust for the second quarter at 6.1 percent and 6.6 percent, respectively, Kayandabila said at a news conference in the port city of Dar es Salaam.
"Despite external shocks, the domestic economy has remained resilient, with strong sectoral performance and sustained private sector credit growth," Kayandabila said.
He added that inflation remained within the target range, averaging 3.3 percent in mainland Tanzania and 4.5 percent in Zanzibar during the first quarter of 2026, supported by stable food prices and prudent monetary policy.
He warned that rising global energy prices and transportation costs, partly driven by tensions in the Middle East, pose risks to the outlook.
The banking sector remained stable, with strong liquidity and capital buffers, while the non-performing loans ratio dropped to 2.9 percent, well below the 5 percent threshold, he said.
Kayandabila also noted improved fiscal performance, with tax revenues surpassing targets due to increased economic activity and better compliance.
He said that continued monitoring of global developments will be crucial, particularly the evolving situation in the Middle East, which could weigh on Tanzania's growth outlook if it persists. ■
