Current account, balance of payment deficit widen
High imports bill and payments abroad pushed up current account and balance of payments deficit for the year ending September compared to the corresponding period last year.
According to the Bank of Tanzania (BoT) monthly economic review for October shows that the current account recorded a deficit of 4,762.3 million US dollars up from 1,682.7 million US dollars in the corresponding period last year.
In the reference period, the overall balance of payments was a deficit of 1,681 million US dollars compared to a surplus of 1,973.5 million US dollars in the previous year.
During the period under review, the external sector faced challenges relating to the War in Ukraine and prolonged Covid-19 lockdowns in China that disrupted supply chains, causing high commodity prices and inflation globally.
Despite the challenges, the exports of goods and services increased to 11,671.8 million US dollars from 9,445.3 million US dollars in the similar period last year largely due to increase of non-traditional goods and services receipts.
During the period under review, the exports of goods increased by 7.4 per cent to 7,195.3 million US dollars with non-traditional exports rising by 6.6 per cent.
Much of the rise in non-traditional exports was recorded in diamond, textiles, iron and steel, fish and fish products and maize grain.
Noticeable improvements have been registered in the exports of diamond, with the value surging to 45.8 million US dollars from 3.1 million US dollars recorded in the corresponding period last year.
The development is largely explained by resumption of production at Williamson Mines after a closure and maintenance period.
Meanwhile, gold, which accounted for 38.7 per cent of goods exports, fell to 2,781 million US dollars from 2,886 million US dollars in the previous year due to slow down in production.
The value of exports of traditional goods amounted to 749.5 million US dollars up from 681.8 million US dollars supported by the increase in the exports of tobacco, cotton and sisal.
On a monthly basis, traditional exports fell to 78.2 million US dollars from 83.5 million US dollars in September last year.
On the other, non-traditional exports were 613.9 million US dollars in September this year slightly higher than 537.6 million US dollars in September last year.
Services receipts increased to 4,476.5 million US dollars in the year ending September this year from 2,746.6 million US dollars in the year to September last year boosted by higher travel and transport receipts.
Travel receipts rose more than twofold to 2,243.8 million US dollars from 1,106 million US dollars consistent with the rise in the number of tourist arrivals by 63.5 per cent to 1,332,476.
On a monthly basis, services receipts were 429.8 million US dollars higher than 279.9 million US dollars in September last year.
