External sector to improve in coming quarters: BoT

DAR ES SALAAM: THE Bank of Tanzania (BoT) has said the external sector is expected to improve further in the coming quarters, owing to the declining pressure from global commodity prices and easing of financial conditions.

The improvement comes as many central banks have lessened aggressiveness in tightening monetary policy and the revamping of tourism activities as the spill over effects of the Covid-19 pandemic continue to fade.

According to the BoT Economic Bulletin for the quarter ending June, the factors are complemented by various measures adopted to address the shortage of foreign exchange and high depreciation of the exchange rate, as well as seasonal increase in foreign exchange inflows from traditional export crops and tourism earnings.

During the quarter under review, the value of goods exported was 1,740.3 million US dollars, almost the same as in the corresponding quarter last year.

While exports of non-traditional goods   registered a slight increase, exports of traditional goods decreased.

The increase in exports of non-traditional goods  was mostly on account of mineral exports, which recorded an annual increase of 2.9 per cent to 864.1 million US dollars, largely driven by gold and coal.

Traditional goods exports declined to 80.3 million US dollars from 86.4 million US dollars in the corresponding quarter last year.

Goods worth 3,223.3 million US dollars were imported during the quarter to June, lower than 3,318.4 million US dollars in the similar quarter ending June last year.

The decline is largely on account of refined white petroleum products and industrial supplies.

White petroleum products worth 504.9 million US dollars were imported during the quarter, compared with 776.5 million US dollars in the corresponding quarter last year owing to volume and price effect.

The primary income account recorded a deficit of 376.2 million US dollars slightly higher than a deficit of 374.5 million US dollars in the same period last year.

Meanwhile, the secondary income account improved to a surplus of 211 million US dollars from a surplus of 166.9 million US dollars in the quarter ending June last year, explained by higher private sector inflows.

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