Current account deficit narrows in 2015

The Bank of Tanzania (BoT) Monetary Statement for the mid-year to December 2015 earnings from goods and services exports increased owing to high export receipts from non-traditional commodities particularly gold, manufactured goods, tourism and transportation services.

For example, the value of gold exports increased by 11.1 per cent to 727.3 million US dollars due to volume effect as prices remained low. Export value of manufactured goods remained strong, increasing by about 7 per cent to 736.7 million US dollars.

Major items under manufactured goods include edible oil, glass and glassware, textile apparels, iron and steel products, wheat flour, sisal products and plastic goods.

During the period, traditional exports recorded a decline in value due to a fall in both export volumes and unit prices of namely cotton, tobacco and cashewnuts, while tea recorded decline in export volumes only.

The fall in prices of traditional exports was mainly influenced by movements of commodity prices in the world market.

The value of imports of goods and services declined by 13.8 per cent to 4,711.6 million US dollars during July to December last year driven by a decrease in goods import as service payments increased marginally.

A significant decline was recorded in imports value of oil due to fall prices in the global market. Other items that declined include building and construction equipment as well as food and food stuffs.

During the review period, the average world market price of oil declined by about 29 per cent to 582.2 US dollars per metric ton compared with 823.9 US dollars per metric ton recorded in the corresponding period in 2014.

SOURCE: DAILY NEWS

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