Import bill surges on higher global commodity prices

THE import bill increased to 17 billion US dollars in the year ending April from 12.9 billion US dollars in the corresponding period last year on account of the rise in commodity prices in the global market.

According to the Bank of Tanzania (BoT) monthly economic review for May the import of white petroleum products is the main driver of the increase, accounting for 30.9 per cent of the change recorded an annual growth of 45.3 per cent to 3,291.0 million US dollars largely on account of price effect.

On a monthly basis, goods worth 939.3 million US dollars were imported in April this year lower than 1,105.2 million US dollars in April last year mostly driven by intermediate goods, in particular petroleum products, attributed to price easing.

Consistent with the increase in goods import bill, services payments rose to 2,648.7 million US dollars in the year ending April from 1,843.8 million US dollars in the corresponding period last year mainly driven by freight payments.

On a monthly basis, service payments were 195.4 million US dollars compared with 173.5 million US dollars in April last year. The increase is largely attributable to other business services and travel payments.

The primary income account deteriorated further, recording a deficit of 1,271.5 million US dollars in the year to April compared with a deficit of 1,228.3 million US dollars in a similar period in the previous year.

However, on a monthly basis, the deficit narrowed to 94.7 million US dollars in April this year from a deficit of 125.5 million US dollars in April last year.

The secondary income account improved to a surplus of 582.1 million US dollars in the year to April from a surplus of 554.0 million US dollars in the corresponding period last year driven by personal transfers.

On a monthly basis, the account balance narrowed to a surplus of 44.9 million US dollars from a surplus of 60.0 million US dollars in April last year.