Macroeconomic policy development in Tanzania

Abstract

Since independence, Tanzania has experienced a series of economic shocks, which have pushed the country into an economic crisis. From mid-1980 onwards, major macroeconomic variables have been fluctuating, forcing the government to intervene through fiscal and monetary policies, with mixed results. The advent of the COVID-19 pandemic in March 2020 further disrupted any macroeconomic performance achieved earlier. In response, the BoT adopted macroeconomic policies aimed at shielding the economy from further deterioration by injecting greater funding into the public sector, for example through the healthcare sector. This was aimed at containing the spread of the pandemic. This policy briefing discusses macroeconomic policy development in Tanzania with the objective of informing policy responses to the COVID-19 pandemic.