Consumption, investment drive up goods, services imports

DAR ES SALAAM: THE imports of goods and services were 16.79 billion US dollars in the period ending December last year, up from 16.06 billion US dollars in 2023, reflecting higher consumption and investment activity.

The Bank of Tanzania (BoT) Monthly Economic Review for January stated that the major contributors were industrial products, refined white petroleum products and freight payments.

The imports of refined white petroleum products declined by 3.6 per cent to 2.63 billion US dollars from the amount reported in 2023 driven by moderation in global prices.

On a monthly basis, the BoT report said imports of goods rose by 10.7 per cent to 1.43 billion US dollars in December last year largely attributed to increased imports of industrial transport equipment and electrical machinery and equipment.

During the period under review, service payments increased by 6 per cent to 2.47 billion US dollars mainly attributed to freight payments, which accounted for 51.5 per cent of total service payments. The increase was consistent with a rise in goods imports.

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Monthly services payments amounted to 261.6 million US dollars in December this year from 186.7 million US dollars in December 2023.

The primary income account deficit was 1.89 billion US dollars last year compared with 1.54 billion US dollars in 2023 attributable to higher interest payments.

Month-on-month, the primary income account deficit was 202.3 million US dollars up from 163.1 million US dollars in December 2023.

The secondary income account surplus amounted to 476.6 million US dollars compared to 656.1 million US dollars in 2023.

On monthly basis, secondary income account surplus was 35.1 million US dollars in December last year down from 98.5 million US dollars in a similar period in 2023.