Current account deficit narrows

DAR ES SALAAM: CURRENT account deficit narrowed to 4,016.4 million US dollars in the year ending August compared with 4,260.1 million US dollars in the preceding year on account of heightened seasonal earnings from tourism activities.

According to the Bank of Tanzania (BoT) monthly economic review for September shows that services receipts that constitute tourism and transportation contributed to improved performance of the exports of goods and services.

During the period under review, the export of goods and services increased to 13,140.8 million US dollars compared to 11,398 million US dollars in the corresponding period last year attributed also to non-traditional exports.

Services receipts increased to 5,613.5 million US dollars in the year ending August from 4,278.2 million US dollars in the corresponding period last year driven by tourism and transportation receipts.

The rise in travel receipts reflects the recovery of the tourism sector, whereas tourist arrivals rose to 1,686,024 from 1,279,211 in the year ending August last year.

On monthly basis,  services receipts were 553.7 million US dollars in August this year compared with 438.5 million US dollars in August last year.

The export of non-traditional goods recorded growth of 5.6 per cent, driven by minerals, particularly gold, and coal.

The value of coal exports increased to 226.8 million US dollars in the year to August from 82.2 million US dollars in the preceding corresponding period, owing to growing demand in the wake of supply shortages associated with the war in Ukraine.

As for gold exports, the rise was largely due to both volume and price effects. Gold exports rose to 2,951.8 million US dollars from 2,748.0 million US dollars in the corresponding period last year.

The export of manufactured goods recorded modest growth, largely driven by fertilisers and glassware.

Exports earnings from manufactured goods increased to 1,401.2 million US dollars compared to 1,340.5 million US dollars in the previous year.

Export of traditional goods also increased to 808 million US dollars from 754.8 million US dollars with all goods in the category recording increase, except cashew nuts and cotton.

On a monthly basis, traditional goods worth 95.9 million US dollars were exported in August compared with 70.5 million US dollars in a similar month last year.

Likewise, non-traditional exports increased to 595.9 million US dollars from 592.3 million US dollars.

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