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Current account deficit widens

CURRENT account deficit has widened to 2,526.8 million US dollars in the year ending March compared to 2,049.3 million US dollars in the corresponding period last year on account of increased goods exports.

According to the Bank of Tanzania (BoT) monthly economic review for the year ending March Tanzania had run overall deficit in its balance of payments of 654.8 million US dollars.

The value of goods and services exported in the year under review increased to 8,54.5 million US dollars from 8,48.2 million US dollars in the corresponding period a year before owing to increase in non-traditional goods exports and service receipt.

Non-traditional goods exports, which account for 78.0 per cent of goods exports and 40.7 per cent of total exports, increased by 10.8 per cent to 3,474.8 million US dollars, largely driven by gold exports. The value of gold exported— which accounts for almost a half of non-traditional exports grew by 9.8 per cent to 1,684.6 million US dollars due to volume increase.

Transport related activities grew by 2.9 per cent to 1,225.6 million US dollars due to an increase in volume of transit goods to-and-from neighbouring countries, particularly Zambia, Democratic Republic of Congo, Rwanda and Burundi.

The gross official reserves amounted to 4,681.7 million US dollars at the end of March, sufficient to cover 4.6 months of projected imports of goods and services, excluding foreign direct investments related imports.

The import cover was above the country and East Africa community benchmarks of not less than 4 and 4.5 m onths, respectively.

Meanwhile, foreign assets of banks increased to 1,041 .8 million US dollars at the end of March from 787.9 million US dollars at the end of March last year.

BANKERS and researchers have hailed ...

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Author: DAILY NEWS Reporter

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