Z’bar current account deficit widens
ZANZIBAR: ZANZIBAR’S current account registered a deficit of 419.3 million US dollars from 314.1 million US dollars in the corresponding period last year on account of an increase in import bills coupled with a decrease in exports of goods.
The Bank of Tanzania (BoT) monthly economic review for September shows that the value of exports of goods and services rose to 202.8 million US dollars in the period under review, compared to 175.6 million US dollars recorded in the corresponding period last year.
The rise in the exports value was contributed largely by the increase in services receipts, particularly tourism-related activities.
During the reference period, service receipts rose by 41.8 per cent to 139.6 million US dollars following an increase in tourist arrivals during the review period.
Clove export declined to 63.2 million US dollars from 77.1 million US dollars recorded in the corresponding period last year due to the cyclical nature of the crop.
On a month-to-month basis, exports of goods and services worth 15.9 million US dollars were registered in August compared to 18.6 million US dollars in the corresponding month last year.
On the other hand, the imports of goods and services rose to 634.6 million US dollars from 493.9 million US dollars recorded in the year ending August last year due to increased goods imports.
In particular, imports of capital goods increased to 67.8 million US dollars from 34.1 million US dollars largely associated with ongoing infrastructure projects.
The major items that recorded an increase were machinery and mechanical appliances, industrial transport equipment and electrical machinery and equipment.
Likewise, imports of intermediate goods rose by 17.2 per cent to 389.0 million US dollars with the main items being refined white petroleum, food and beverage for industrial use and motorcars for households.
The increase in consumer goods imports was mostly driven by other consumer goods sub-categories.
The imports of goods and services amounted to 54.4 million US dollars in August compared with 53.2 million US dollars in the corresponding period of last year.
