TANZANIA current account deficit has widened in the year ended September on account of 7 per cent rise in imports of oil, capital and intermediate goods compared to the corresponding period last year.
“The large share of capital goods was a reflection of increased investment particularly in infrastructure projects,” the Bank of Tanzania (BoT) said in its monthly economic review for September.
Current account deficit widened to 2,008.5 million US dollars in the period under review from a deficit of 1,189.6 million US dollars in the year to August last year.
“Goods imports amounted to 8,079.9 million US dollars, 7 per cent higher compared to August last year by 7.0 per cent dominated by capital and intermediate goods that grew by 36.1 per cent and 38.3 per cent, respectively,” stated the report.
The value of oil imports was 1,999.3 million US dollars and accounted 24.7 per cent of total imports of goods.
The import bill for goods and services was 10,296.1 million US dollars in the year ending August compared to 9,534.6 million US dollars in the year ending August last year.
The widening current account deficit has contributed to the deficit of 183 million US dollars of the overall balance of payments compared to a surplus of 1,788.8 million US dollars in the corresponding period last year.
Earnings from exports of goods and services amounted to 8,808.4 million US dollars during the year, almost unchanged from the preceding year. Traditional goods exports amounted to 1,157.1 million US dollars compared with 852.1 million US dollars.
The services account recorded a surplus of 1,581.1 million US dollars in the year ending August compared to a surplus of 1,858.9 million US dollars in the year to August, as a result of increase in service payments coupled with a decline in receipts.
Earnings from services declined slightly to 3,797.3 million US dollars from 3,839.9 million US dollars, driven mostly by decline in receipts under travel category.
Receipts from transport services improved by 12.6 per cent to 1,247.7 million US dollars due to increase in volume of transit goods to and from the neighbouring countries namely the Democratic Republic of the Congo, Zambia and Burundi.
Service payments rose to 2,216.2 million US dollars in the year ending August from 1,981.0 million US dollars in the year ending August last year.
Payments for transport, travel and other service payments contributed significantly to the increase in services.
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Publish date : 2018-10-30 12:48:00