Goods, services imports rise on fuel drop
DAR ES SALAAM: THE import of goods and services recorded a modest 4.5 per cent increase to 17.42 billion US dollars for the year ending August, largely reflecting a decline in imports of refined white petroleum products.
The latest Bank of Tanzania (BoT) monthly economic review shows that imports of refined white petroleum products fell by 11.4 per cent to 2.51 billion US dollars following a decline in global oil prices.
“This decline is significant for the economy as it reduces import costs, eases pressure on the trade balance and can help stabilise domestic fuel prices, providing relief to businesses and consumers alike,” the Bank report stated.
In contrast, imports of industrial supplies, transportation equipment and spare parts and accessories increased, bolstered by the country’s industrialisation efforts and ongoing infrastructure projects.
On a monthly basis, imports of goods amounted to 1.37 billion US dollars in August a decrease from 1.46 billion US dollars in August last year largely driven by reduced oil import bills.
Service payments amounted to 3.02 billion US dollars up by 19 per cent from August last year.
The increase was driven by higher freight payments, consistent with the increase in import bill. On a monthly basis, service payments amounted to 281.8 million US dollars in August slightly down from 284.7 million US dollars in August last year.
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The primary income account deficit widened to 1.99 billion US dollars compared to 1.70 billion US dollars in the same period in 2024, owing to increased payment of income on equity and interest abroad.
On a monthly basis, the primary account deficit amounted to 175.1 million US dollars in August up from 149 million US dollars in August last year.
As for the secondary income account, the surplus amounted to 502.5 million US dollars lower than 597 million US dollars in the corresponding period last year mainly attributed to personal transfers.
On a monthly basis, the surplus amounted to 15.4 million US dollars in August down from 19 million US dollars in August last year.
