Bank Of Tanzania Releases October Economic Review

The current account deficit widened to USD 2,159.0 million in the year ending September 2018 from USD 1,192.5 million in the year ending September 2017, largely accounted by increase in imports, particularly transport equipment and building and construction.

Export value of goods and services was USD 8,669.1 million compared with USD 8,741.3 million recorded in the year ending September 2017 mainly due to decline in export of non-traditional goods. Traditional exports increased by 32.7 percent to USD 1,108.2 million, owing largely to high export value of cashew nuts, cloves, cotton, sisal and tea.

Import bill for goods and services increased to USD 10,323.7 million in the year ending September 2018 compared with USD 9,421.2 million in the year ending September 2017. All categories of imports went up, with a notable increase in capital goods, particularly, transport equipment and building and construction.

The increase in capital goods largely reflect the Government’s efforts on infrastructure development, including construction of standard gauge railway, roads and bridges, airports, and ports. Oil import, which accounts for the largest share of imports of goods, increased by 8.1 percent to USD 1,972.9 million largely consistent with the rise in oil prices in the world market caused by supply factors.

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