Tanzania economic update: overcoming demographic challenges while embracing opportunities

The 20th Tanzania Economic Update (TEU) shows that accelerating a fertility decline has the potential to enable the country to reap the benefits of a demographic dividend, which refers to how improved health and reduced fertility can drive economic growth. When a country experiences better health outcomes and fewer births, its age structure changes. This shift means more people are in the working-age bracket compared to those who are not working, which boosts economic growth and helps reduce poverty. The TEU titled, Overcoming Demographic Challenges While Embracing Opportunities, shows that at the current population growth rate of 3%, the number of people will double every 23 years. However, accelerating the demographic transition, which leads to a higher share of working-age people in Tanzania, would lead to almost double per capita GDP growth by 2050 and potentially lift six million people out of poverty. This, in turn could yield further benefits such as improved institutional quality, thereby potentially lifting six million of its citizens out of poverty.