The economy of Tanzania is primarily agricultural. Some 84 % of the economically active population is engaged in farming, forestry, or fishing, and agricultural products account for a remarkable share of annual exports. The nation is the world’s largest producer of sisal and cloves. With per capita income an around $270 a year, Tanzania is one of the poorest countries in the world. Government programs once called for a form of socialism, and most banks were nationalized in 1967. An economic recovery program announced in the mid-1980s generated increases in agricultural production and financial support from donor nations, and the government has adopted financial restraints recommended by the International Monetary Fund. The around national budget in 1996 included $733 million in revenues and $768 million in expenditures.

The Tanzanian economy is overwhelmingly agrarian in nature and reflects the leadership's political commitment to socialist development and central planning. Agriculture constitutes over half of the gross domestic product (GDP) and some 80 % of export earnings, and it provides a livelihood for about nine-tenths of the economically active population. Industry accounts for less than 10 % of the GDP, and mining less than 1 %, whereas services, including public administration, produce around one-third of the GDP. A number of industries and public services were nationalized at the time of the Arusha Declaration in 1967, when the intention to build a socialist state was announced.

Tanzania is one of the poorest countries in the world. The economy is heavily dependent on agriculture, which accounts for half of GDP, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, limit cultivated crops to only 4% of the land area. Industry is mainly limited to processing agricultural products and light consumer goods. The World Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's deteriorated economic infrastructure. Growth in 1991-2000 featured a pick up in industrial production and a substantial increase in output of minerals, led by gold. Natural gas exploration in the Rufiji Delta looks promising and production could start by 2002. Recent banking reforms have helped increase private area growth and investment. Continued donor support and solid macroeconomic policies should allow Tanzania to achieve real GDP growth of 6% in 2001 and in 2002.