Tanzania: Zanzibar Current Account Deficit Narrows

ZANZIBAR current account balance deficit narrowed to 16.6 million US dollars from t58.1 million in

the corresponding period in 2019, largely explained by increase in exports and current inflows.

The Central Bank's latest report shows that goods account registered a deficit of 235.6 million US dollars an increase of 9.5 percent compared to the corresponding period last year, whereas service account weakened by 5.1 percent, occasioned by higher payments abroad related to health and education.

On monthly basis, current account balance recorded a surplus of 0.9 million US dollars compared to a deficit of 5.5 million US dollars registered in the corresponding period, largely owing to improved inflow of current transfers.

The exports of goods and services increased by 24.6 percent to 236.2 million US dollars compared to the amount registered in the year ending June in the previous year driven by increase in exports of cloves and seaweeds.

Cloves exports was 18.6 million US dollars compared to 1.2 million US dollars earned in the period ending June last year.

Seaweeds exports earnings increased by 30.8 percent to 5.3 million US dollars driven by higher unit price in the world market.

In the year ending June, goods and services imports rose to 369.6 million US dollars an increase of 24.4 percent compared to the corresponding period in 2019.

All major import categories increased, save for intermediate goods, which declined by 7.2 percent. The increase was more observed in capital goods, specifically, machinery, and building and construction materials.

On month-to-month basis imports rose to 16.3 million US dollars in June this year from 14.0 million US dollars in the preceding month, implying recovery of the global supply chain following easing of Covid- 19 pandemic lockdowns in various exporting countries in the world.