Tanzania: Imports of Goods, Services Decline

 

By Dailynews Reporter

THE imports of goods and services declined to 9,869.7 million US dollars from 10,043.7 million US dollars in the corresponding period last year with a significant decrease in travel payments, transport equipment, building and construction materials.

According to the Bank of Tanzania (BoT) monthly economic review, oil imports which constituted 18.4 per cent of all goods imports, increased marginally by 1.3 per cent to 1,576.7 million US dollars mostly on account of the volume effect.

The recent increase of oil prices in the world market is projected to revert to the prepandemic level, which could adversely affect the balance of payments.

Goods import bill increased to 795.3 million US dollars from 575.4 million US dollars recorded in June last year due to a rise in oil imports as well as capital and consumer goods.

Services payments amounted to 1,282.7 million US dollars in the year ending June lower than 1,608.3 million US dollars recorded in the corresponding period last year bolstered by lower travel payments, arising from containment measures by other countries in an attempt to limit the spread of Covid-19.

On a month-to-month basis, services payments increased to 124.5 million US dollars in June from 87.5 million US dollars in the corresponding period last year reflected by an increase in freight payments, consistent with the rise in monthly import bill.

The primary income account deficit narrowed to 831.2 million US dollars in the year ending June from 895.1 million US dollars recorded in the corresponding period last year explained by lower payments abroad.

The deficit in the primary income account remained broadly unchanged around 79.2 million US dollars in June. Secondary income account registered a surplus of 436.4 million US dollars during the year ending June slightly lower than a surplus of 464.4 million US dollars in the corresponding period last year owing to relatively lower inflows to the private sector.

In June this year, a surplus of 31.5 million US dollars was registered compared with 61.9 million US dollars in the corresponding period last year.