Trade surplus cuts TZ’s current account deficit
DAR ES SALAAM: CURRENT account deficit narrowed to 2.12 billion US dollars in the year ending June from 2.79 billion US dollars a year earlier, driven by a robust performance in exports that outpaced imports.
The narrowing of the current account deficit signals growing strength in the country’s external sector, reflecting improved export performance and reduced reliance on imports.
This development supports foreign exchange stability, strengthens the country’s balance of payments position and enhances investor confidence which are key factors for sustaining economic growth and resilience amid global economic uncertainties.
According to the latest Bank of Tanzania monthly economic review, the exports of goods and services rose markedly by 17.7 per cent to 16.93 billion US dollars compared to 14.38 billion US dollars in the corresponding period last year.
“This growth was largely driven by increased gold exports, along with significant expansion in travel (tourism) and transportation services,” the Bank report stated.
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The exports of goods, which accounted for 57.9 per cent of total exports of goods and services, rose to 9.82 billion US dollars in June, up from 7.80 billion US dollars in June last year.
This growth was largely driven by increased exports of gold, cashew nuts, tobacco, horticultural products and coffee. During the period under review, gold exports alone increased to 3.80 billion US dollars from 3.12 billion US dollars, supported by favourable global market prices and purchases by the Bank of Tanzania.
The traditional exports grew to 1.46 billion US dollars compared to 1.04 billion US dollars, reflecting higher export volumes of cashew nuts, tobacco and coffee.
Manufactured exports also recorded gains, particularly in iron and steel, edible oil and fertiliser. Notably, cereal exports led by maize and rice more than tripled to 501.3 million US dollars from 115.4 million US dollars driven by rising demand from neighbouring countries.
On a monthly basis, goods exports were 618.3 million US dollars in June compared with 697 million US dollars in June last year, with gold and tobacco remaining the key contributors.
Service receipts rose to 7.11 billion US dollars in the year ending June from 6.58 billion US dollars in the corresponding period last year. The growth was primarily driven by increased activity in travel (tourism) and transport services.
The rise in travel receipts was largely attributed to a 10 per cent increase in international tourist arrivals, which reached 2,193,322 up from 1,994,242 in the corresponding period of 2024 reflecting a global rebound in tourism across all regions.
