Current account deficit narrows on robust exports

DARES SALAAM: STRONGER growth in exports of goods and services contributed largely to improvement of external sector performance with the current account deficit narrowing to 2.22 billion US dollars compared with 2.73 billion US dollars in the period ending April last year.

According to latest Bank of Tanzania monthly economic review, the exports of goods and services grew by 16.8 per cent to 16.68 billion US dollars from 14.28 billion US dollars in the period ending April last year.

The increase was driven by exports of gold, travel (tourism), agricultural products and transportation services.

The Bank report shows that exports of goods, which accounted for 58.4 per cent of the total exports of goods and services, rose to 9.74 billion US dollars from 7.82 billion US dollars during the year ending April 2024.

The increase was driven by exports of gold, cashew nuts, coffee, tobacco and horticultural products. Gold exports increased to 3.90 billion US dollars compared with 3.13 billion US dollars last year, owing to favourable prices in the world market.

Traditional exports also rose, with much of the increase registered in cashew nuts, coffee and tobacco.

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However, export of manufactured products declined due to a slowdown in the exports of fertilisers, cement and ceramic products.

On a monthly basis, exports of goods were 708.6 million US dollars in April this year, up from 556.4 million US dollars in April last year driven by gold and cashew nuts.

During the review period, service receipts rose by 7.3 per cent to 6.94 billion US dollars from 6.46 billion US dollars in last year owing to an increase in travel (tourism) receipts.

Travel receipts accounted for 56 per cent of the total service receipts. The increase in travel receipts was largely explained by a surge in international arrivals to 2,162,487 in the year to April this year from 1,938,875 in the corresponding period last year.