Tanzania, May 28 -- Dar es Salaam. The African Development Bank's (AfDB) latest outlook projects Tanzania's economy to grow by 5.4 percent in 2026, as geopolitical tensions in the Middle East push up energy and import costs across the region, although the country is still expected to remain among East Africa's stronger performers.

The continental lender expects growth to rebound to 6.1 percent in 2027, supported by infrastructure investment, ongoing structural reforms, and gradual improvements in the business environment.

"Downside risks include the impact of the Middle East conflict and global geopolitics that could increase oil and food prices and disrupt export and import supply chains, climate change vulnerabilities, and lingering e...