GOODS’ exports increased by 17.6 per cent to 3,576.8 million US dollars as a result of rise in non-traditional exports of gold, horticulture products and some manufactured goods.
According to the Bank of Tanzania (BoT) Monetary Policy Statement for the Mid-Year Review 2020/21, non-traditional exports increased by 31.9 per cent to 2,957.2 million US dollars.
During the reference period, the exports of gold increased by 28.9 per cent to 1,631.6 million US dollars on account of increase in both volume and price and accounted for 55.2 per cent of non-traditional exports.
Manufactured goods exports improved, owing to good performance in exports of textiles, iron and steel products, glass and glassware.
Traditional exports amounted to 442.7 million US dollars compared to 638.0 million US dollars mainly driven by decline in exports of cashew nuts.
Exports of goods and services decreased by 15.0 per cent to 4,601.4 million US dollars from the corresponding period in the fiscal year 2019/20, largely on account of decrease in services receipts, particularly tourism.
Specifically, services receipts decreased by 56.8 per cent, owing to decline in travel receipts, following measures taken by most of countries to limit the spread of Covid-19. The measures included lockdowns and suspension of international passenger flights.
Furthermore, the imports of goods and services were 4,565.8 million US dollars in July to December last year compared with 5,488.3 million US dollars in the corresponding period in 2019.
All goods imports decreased, with the exception of consumer goods. A significant decrease was noted in the imports of transport equipment, oil, and building and construction.
The value of oil imports, which accounted for about 16.4 per cent of goods imports, declined by 30.7 per cent to 654.6 million US dollars following decrease in imports volume.
Services payments decreased by 40.7 per cent due to decline in travel payments.
The current account balance is projected to record a deficit of 3.6 per cent of Gross Domestic Product (GDP) in the fiscal year 2020/21 compared with 1.2 per cent in the fiscal year 2019/20.
This is largely attributed to the weakening global economy and projected slow growth of exports, particularly tourism receipts due to the impact of Covid-19 pandemic, coupled with increase in imports of capital goods.
The external sector sustained satisfactory performance during July to December 2020 period, notwithstanding challenges of global spillover effects of Covid-19.
The current account recorded a deficit of 331.3 million US dollars compared with a deficit of 344.3 million US dollars in the corresponding period in the fiscal year 2019/20, owing to increase in export of goods and decline in imports.
The overall balance of payments recorded a deficit of 390.0 million US dollars from a surplus of 1,129.7 million US dollars recorded in the corresponding period in the fiscal year 2019/20, largely attributed to decline in official inflows.