Z’bar’s current account deficit widens

ZANZIBAR: ZANZIBAR current account registered a deficit of 416.5 million US dollars during the year ending July in comparison to 284 million US dollars in the corresponding period last year largely associated with an increase in import bills.

Bank of Tanzania (BoT) monthly economic review August showed that the Isles’ exports of goods and services grew by 13 per cent to 205.2 million US dollars in the year ending July, from the value recorded in the corresponding period last year, owing to an increase in service receipt in particular tourism-related activities.

Services receipt particularly tourism rose by 51.1 per cent to 139 million US dollars following an increase in tourist arrivals.

Meanwhile, goods exports declined largely on account of cloves that accounted for about 64 percent of goods exports.

Cloves export decline to 42.7 million US dollars from 62.8 million US dollars in the year ending July last year due to cyclical nature of the crop.

On monthly basis, goods and services worth 13.7 million US dollars were exported in July compared with 14.6 million US dollars in July last year.

The imports of goods and services, rose to 633.4 million US dollars in the year to July from 478.3 million US dollars in the corresponding period last year, with both goods imports and services payments recording increases.

All major categories of goods imports increased. As for capital goods, the increase was largely associated with ongoing infrastructure developments and construction activities, while that of intermediated goods was mainly driven by high prices of fuel in the global market.

On a monthly basis, imports of goods and services amounted to 69.8 million US dollars in July this year compared with 37 million US dollars in July last year.

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