DECLINE of volume and low export performance are behind the fall of export earnings in the quarter ending June this year, according to the Bank of Tanzania (BoT) Economic bulletin.
According to the BoT report, export earnings from goods and services declined to 1,959.2 million US dollars in the quarter ending June this year compared with 2,031.2 million US dollars of the last year's corresponding period.
Manufactured goods exports were lower than reported in the quarter ending June 2016 partly associated with the implementation of EAC Single Custom Territory (SCT).
“It is worth to note that under the SCT arrangement, goods exported from one partner state to other partner states are treated as transfers hence not included in exports statistics,” stated the report.
However, the BoT said improvement is expected as the statistical shortfall is addressed by the respective institutions. Meanwhile, the value of gold exports fell by 2.8 per cent to 334.1million US dollars following a decrease in volume.
The value of goods imports dropped by 21.9 per cent to 1,669.9 million US dollars from the amount recorded in the quarter ending June 2016. All the main categories of goods import declined except for fertilisers, food and foodstuff. Much of the decline occurred in capital goods, industrial raw materials and oil.
The value of oil imports, which accounts for the largest share in goods import, went down by 22.7 per cent to 280.8 million US dollars from 363.1 million US dollars in the corresponding quarter in 2016, following a decline in volume of oil import that was partly associated with increased usage of gas for power generation. Capital goods import declined partly due to the completion of major projects and exploration activities.
Imports of food and foodstuffs rose by 4.8 per cent to 151.0 million US dollars mainly following increase in the sugar and cereals import bill Services account improved by 50 per cent to a net surplus of 333.9 million US dollars during the quarter ending June 2017 compared with the net surplus of 210.3 million US dollars recorded in the corresponding quarter in 2016.
This change was on account of a decline in service payments, particularly travel related payments.
The income account improved slightly to a net deficit of 316.3 million US dollars from a deficit of 334.9 million US dollars in the quarter ending June 2016, owing to an increase in income receipts and a decline in income payments, particularly interest.