Country’s Current Account Deficit Narrows

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The current account balance narrowed by 16.2 per cent to a deficit of 4,440.4 million US dollars in the year ended July this year compared with the corresponding period in 2014.

According to the Bank of Tanzania (BoT) monthly economic review for August, the improvement came from both increase in export of goods and services, and decrease in goods import.

During the period, export of goods and services maintained upward trend, increasing by 9.6 per cent to 9,340.5 million US dollars in the year to July 2015 compared to the corresponding period in 2014.

Traditional exports amounted to 899.6 million US dollars compared with 841.0 million US dollars in the year ending July 2014. Export of coffee and cashew nuts increased while other traditional exports declined.

The value of cashew nut exports increased significantly on account of both volume and price while that of coffee was due to price increase in the world market. The value of non-traditional exports dominated by mineral and manufactured goods-was 4,006.5 million US dollars in the year ended July 2015, an increase of 8.9 per cent from the corresponding period in 2014.
Manufactured exports maintained a positive trend of 7.4 per cent recorded in the past three years, mainly supported by domestic production and increased demand from neighbouring countries. Meanwhile, gold exports which constitutes the largest part of mineral exports-declined as both volume and world market prices decreased. Service receipts were USD 3,698.4 million compared with 3,323.7 million US dollars in the year ending July 2014.

The improvement was due to increase in travel receipts by 13.4 per cent to 2,214.9 million US dollars following an increase in the number of tourists. Transportation receipt also increased by 12.1 per cent to 972.8 million US dollars owing to increased transit goods to and from neighbouring countries.

During the period under review, imports of goods and services declined by 2.6 per cent to 13,564.7 million US dollars compared to the year ending July 2014. The decline in goods import was on account of oil imports, which decreased by around 25 per cent following the fall in oil prices in the world market and import volume.


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