Tanzania's current account deficit narrows 23 pct in year to June

Tanzania's current account deficit narrows 23 pct in year to June

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Tanzania's current account deficit narrowed 22.5 percent in the year to June, helped by a decline in oil imports and improved performance of tourism and manufacturing sectors, the central bank said on Thursday.

The gap narrowed to $4.091 billion in the 12 months to June from $5.281 billion in the same period last year, the bank the said in its latest monthly economic report.

Imports of goods and services fell to $13.37 billion from $13.96 billion previously, while total exports rose by 9.4 percent to $9.39 billion, the bank said.

"The decrease in imports was mostly driven by a decrease in intermediate goods, particularly oil and fertilizers," it said.

Earnings from tourism, the east African country's main foreign exchange source, rose to $2.19 billion from $1.97 billion previously due to more visitor arrivals, it said.

Oil imports fell by 27.2 percent to $3.06 billion in line with falling import volumes and declining global oil prices.

Earnings from gold, the other main source of foreign income, fell to $1.22 billion from $1.47 billion a year ago, reflecting lower export volumes and global prices.

Gross official foreign exchange reserves held by the central bank in the year to June amounted to $4.4 billion, or about four months of import cover, the central bank aid.

Source:Reuters
 
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