Goods, services imports surge

DAR ES SALAAM: IMPORTS of goods and services increased to 16,796.5 million US dollars in the year ending July from 14,298 million US dollars in the previous year.

The Bank of Tanzania (BoT) Monthly Economic Review for August shows that the main drivers of the rise in imports are namely machinery, white petroleum products, industrial transport equipment, fertilisers and service payments, particularly freight payments.

Import of white petroleum products, which accounted for 20.9 per cent of the total imports bill, increased by 12.5 per cent, owing to price effects.

On monthly basis, goods worth 1,090.7 million US dollars were imported in July this year higher than 1,044.1 million US dollars in July last year.

Services payments also rose to 2,496.5 million US dollars from 2,080.5 million US dollars in the year to July last year largely driven by freight payments consistent with the rising import bill.

On a monthly basis, service payments were 173 million US dollars in July this year compared with 213.9 million US dollars in July last year.

During the year under review, the primary income account balance recorded a deficit of 1,284.4 million US dollars higher than 1,260.8 million US dollars a year before.

On a monthly basis, the account recorded a deficit of 110.4 million US dollars compared with 96 million US dollars in July last year.

The secondary income account balance improved to a surplus of 648.1 million US dollars in the year to July this year from a surplus of 580.4 million US dollars in the corresponding period last year explained by the improvement in personal transfers.

On a monthly basis, the secondary income account had a surplus balance of 52.2 million US dollars in July this year lower than 55.3 million US dollars in July last year.