Current account deficit up 67 per cent-BoT‏
Tanzania`s current account deficit rose by 67 per cent to $3.1 billion in the year to October from $1.86 billion a year before due to higher imports and a drop in current transfers, the central bank has said.
Imports rose by 36 per cent to $6.36 billion compared with the same period a year before, the Bank of Tanzania (BOT) said in its monthly economic review for November.
``Current transfers declined to $518.2 million from $717 million recorded during the year ... following delays in commencement of disbursements by development partners,`` the bank said.
Official current transfers comprise aid and loans from external sources.
Imports of goods such as transport, construction equipment and oil increased during the period under review, the bank said.
Exports of goods and services rose to $4.47 billion from $3.69 billion a year earlier, helped by growth in manufactured goods, which rose by 97 per cent to $564 million.
Gold and tourism accounted for just over 47 per cent of export revenues.
The bank said earnings from traditional exports tea, coffee, cotton, tobacco and cashew nuts rose 24 per cent to $375 million during the year due to higher cotton exports and improved cotton and cashew nut harvests.
Non-traditional exports boosted by manufactured goods and gold rose 25 per cent to $2.12 billion compared with the year before.
The country`s gold exports decreased to 32.7 tonnes from 40.7 tonnes a year before. But its value rose 15 per cent to $934 million during the same period, thanks to higher world prices.
``While the volume of gold exports went down ... the prices of gold in the world market increased from $667.4 per troy ounce to $874.4 per troy ounce in the review period,`` the bank said.
Tanzania, reputed for relative calm in the region, mostly derives its livelihood from mining, tourism and agriculture sectors.
But the contribution of financial services, manufacturing and telecommunications to its economy is growing steadily.
The BOT said credit to the private sector from banks grew by close to 53 per cent to 4.2 trillion shillings ($3.13 billion) during the year, the highest rate seen in recent years, thanks to better management of government expenditure and increased aid inflows.
``Similarly, expansion of various economic activities related to trade, transport and communications, manufacturing, construction and marketing of agricultural products, contributed to the expansion of private sector in the country,`` the bank said.