Tanzania was on Wednesday July 1 declared a lower middle income country, an achievement that comes five years ahead of the projected schedule.
In a post on twitter, Tanzanian President John Pombe Magufuli confirmed the good news and went on to congratulate his compatriots for this “historic achievement”.
“We had envisaged to achieve this status by 2025, but with strong determination, this has been possible in 2020,” said Magufuli in a tweet.
Today, the World Bank has declared Tanzania Middle Income Country. In this regard, I congratulate all my compatriots for this historic achievement. We had envisaged to achieve this status by 2025 but,with strong determination, this has been possible in 2020. GOD BLESS TANZANIA.
— Dr John Magufuli (@MagufuliJP) July 1, 2020
Africa Tembelea understands that on July 1 each year, the World Bank revises the income classification of the world’s economies based on estimates of Gross National Income (GNI) per capita for the previous year.
Countries in this category have a GNI per capita of more than $1,046 but less $4,125. Those in the upper middle-income have yearly income levels of $4,126 to $12,735.
Records show that Tanzania cemented its position of achieving this status in 2017 but was only declared a lower middle income country on July 1, 2020.
While there is need to measure development progress in different ways, income-based measures, such as GNI, remain the World Bank’s central yardstick for assessing economic performance.
Last year, Tanzania recorded an economic growth of 7 per cent making it one of the fastest growing economies in Africa.