Current account deficit narrows 29pc in 2024
DAR ES SALAAM: CURRENT account deficit narrowed by 28.6 per cent to 2.1 billion US dollars last year from 2.9 billion US dollars in 2023 on account of increased export earnings and a slowdown in imports.
The Bank of Tanzania (BoT) Monthly Economic Review for January stated that the performance was further supported by improvements in both global and domestic economic conditions.
During the period under review, the exports of goods and services grew by 15.1 per cent to 16.1 billion US dollars from 13.9 billion US dollars in December 2023.
“This performance was associated with increased export earnings from minerals, agricultural products and services mainly those associated with tourism and transportation,” stated the BoT report.
The exports of goods were 9.1 billion US dollars, an increase of 18.8 from 7.6 billion US dollars in 2023.
The BoT attributed this growth to higher exports of gold, cashew nuts, tobacco, horticulture products, coffee and fish and fish products.
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Gold exports amounted to 3.4 billion US dollars and accounted for 36.8 per cent of total goods exports, driven mainly by price effects.
Also, the BoT report said exports of traditional commodities, amounted to 1.4 billion US dollars with cashew nuts, tobacco, and coffee contributing the most.
On monthly basis, goods exports amounted to 847.6 million US dollars in December last year, compared to 589.8 million US dollars in a similar period in 2023, driven by higher cashew nuts and gold exports.
During the year under review, service receipts increased by 10.6 per cent to 6.9 US dollars from 6.3 billion US dollars in 2023, following higher receipts from tourism (travel) and transportation.
Travel receipts rose by 8.38 per cent to 3.6 billion US dollars on account of an increase in international arrivals.
Furthermore, the foreign exchange reserves were 5.5 billion US dollars in 2024 compared to 5.4 billion US dollars in December 2023.
The reserve, according to the BoT report was sufficient to cover 4.5 months of projected imports of goods and services, aligning with both national and EAC benchmarks of 4 and 4.5 months, respectively.
