Wednesday, September 7, 2016

Tanzania current account deficit narrows

DAILY NEWS Reporter

CURRENT account deficit has narrowed to more than half to 1,885.3 million US dollars in June 2016 compared to 4,343.5 million US dollars of the same period last year.

According to the Bank of Tanzania (BoT) monthly economic review for June this year, the development was largely driven by improved performance of non-traditional exports and services, coupled with a decline in imports, particularly oil.

The performance of exports of goods and services slightly improved to 10,096.9 million US dollars compared with the 9,310.6 million US dollars in the year ending June 2015 due to diverse domestic and external factors.
The improvement, however, was manifested in non-traditional export commodities and services receipts.
In fact, a large part of the improvement occurred in travel which is mainly tourism, manufactured goods and gold. Foreign exchange earnings from traditional exports were lower than in the corresponding period in 2015.
The value of traditional exports dropped by 8.8 percent to 828.0 million US dollars driven by volume and prices. Notably, cotton and cashew nut declined on account of both volume and prices, while tobacco recorded low export value following a decline in price.
The fall in prices of these traditional export crops was consistent with the general decline in commodity prices in the world market.
The increase in global production was a major contributing factor. Export of cotton also declined, but this was due to low production during 2015/16 crop-season following unfavourable weather and delays in procurement and application of inputs.
By contrast, foreign exchange earnings from export of sisal and coffee increased the former owing to a rise in both volume and prices and the later manifested only in export volume.
As regards non-traditional exports, the value increased by 15.3 percent to 4,595.1 million US dollars, driven mostly by manufactured goods, gold, diamond, re-exports and several small exports classified under ‘other exports1’
In particular, manufactured goods grew by 11.1 percent to 1,462.6 million US dollars, with a notable improvement recorded in exports of textile apparel and plastic items.
Gold export, which constitutes the largest share of nontraditional exports, recovered slightly amidst subdued prices in the recent period. This time around, it improved by 7.9 percent to 1,334.6 million US dollars as result of increase in export volume

No comments :

Post a Comment