By Matukio Daima media
TANZANIA'S current account deficit significantly narrowed to US$2.567.2 million in the year ending August 2024. from US$3,846.5 million in the corresponding period in 2023. driven by the improved performance of the external sector.
This progress has been supported by global economic recovery, strong export growth, and a moderated rise in import bills, alongside favorable in ternational commodity prices.
Bank of Tanzania's (BoT) month economic review for September shows that exports of goods and ser vices surged to US$ 15,064.6 nullion in the year ending August 2024, com pared to US$ 13,290.1 million during the same period in 2023.
This remarkable growth was large ly fueled by higher service receipts, particularly from tourism, as well as increased exports of gold and tradi tional goods such as tobacco, cashew nuts, and horticultural products
Praditional exports reached USS 1099.9 million in the year ending August 2024, up from US$ 807.9 million the previous year, with much of the increase attributed to tobacco and cashew nut exports due to both vol ume and price effects.
Non-traditional exports rose slight- ly to US$ 6.568.3 million from USS 6.349.8 million in the preceding year.
A key driver behind this increase was the rise in gold exporta, which surged by 8.2 percent to US$ 3,1894 million. reflecting both volume and price ef fects
Horticultural exports, particularly edible vegetables, experienced robust growth, increasing by 35.3 percent to USS 454:4 million due to higher ship ment volumes
Service receipts saw a significant surge, climbing to US$ 6,948.5 million in the year ending August 2024, up from US$ 5,711.3 million in 2023
This growth was largely attributed to strong performances in travel and transport services, with tourism lead ing the charge.
Tourist arrivals increased by 21.7 percent, reaching 2,051,404, a clear indication of the sector's recovery.
Tourist arrivals increased by 21.7 percent, reaching 2,051,404 during the year ended in August, 2024. File photo
Transport earnings, mainly from freight charg es, also grew, amounting to US$ 2,597.6 million compared to US$ 2.184.7 million in the previ
ous year. On the import side, goods and services im ports rose modestly to USS 16.427.5 million in the year ending August 2024, compared to USS16.327.7 million in 2023.
Key drivers of this increase were the imports of refined petroleum products, iron and steel, and electrical machinery.
On a monthly basis, goods imports totaled US$ 1,468.3 million in August 2024, up from US$ 1.163.9 million in the corresponding period
The primary income account deficit widened to US$ 1,760.8 million for the year ending Au gust 2024, up from USS L446.4 million in the previous year, primarily due to increased inter est payments.
However, on a monthly basis, the primary income account deficit narrowed to US$ 96.2 million in August 2024, compared to USS 114.9 million in August 2023.
The secondary income account recorded a surplus of US$ 556.5 million for the year end ing August 2024, slightly down from US$ 6376 million in the same period in 2023.
This surplus was bolstered by a rise in personal transfers.
On a monthly basis, the secondary income account registered a sur plus of US$ 43.5 million in August 2024, comparable to the same pe riod in 2023
This robust performance of the external sector, particularis driven by export growth and stable import environment, un derscores Tanzania's grad recovery amid improving got economic conditions
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