Saturday, April 20, 2024

Tanzania’s current account deficit maintains downward trend

TANZANIA: TANZANIA’S current account deficit narrowed to 2,701.4 million US dollars in the period ending February this year compared with 5,133.6 million US dollars in the previous year contributed largely by the decrease in import bills.

The Bank of Tanzania’s latest monthly economic review shows that the decline in imports of goods and services was noticed largely in refined white petroleum products, fertilisers and plastic items.

“The external sector showed signs of improvement, with imports declining, exports increasing and global commodity prices moderating albeit remaining above the levels before the breakout of the Russian-Ukraine war,” the BoT report stated.

READ MORE: Low seasonal inflows push up forex demand in Q1

During the period under review, the exports of goods and services rose by 14.7 per cent reaching 14,274 million US dollars compared with the level recorded in the corresponding period last year. The main drivers included tourism receipts, traditional goods and minerals, specifically gold.

The service receipts surged to 6,482.5 million US dollars in the year to February from 5,094 million US dollars in the previous year largely driven by travel (tourism) and transportation receipts. On a monthly basis, service receipts amounted to 598.2 million US dollars in February compared with 493.3 million US dollars in February last year.

Traditional goods exports amounted to 1,022.7 million US dollars from 748.7 million US dollars in the previous year with much of the increase observed in exports of tobacco and coffee on account of volume and price effects.

The exports of nontraditional goods rose by 2.4 per cent to 6,343.1 million US dollars with the increase noticeable in gold, horticultural products and oil seeds. The export of gold amounted to 3,108.8 million US dollars compared with 2,872.6 million US dollars in the previous period and accounted for 49 per cent of non-traditional exports.

The exports of horticultural products edged up by 46.5 per cent to 425.4 million US dollars driven by an increase in exports of edible vegetables.

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