AfricaPress-Tanzania: THE current account deficit narrowed by almost half to 661.9 million US dollars from 1,292.6 million US dollars recorded in 2019, on account of increase in exports of goods and decrease in imports.
According to the Central Bank’s monthly economic review for January, the overall balance of payments recorded a deficit of 764.8 million US dollars in comparison to a surplus of 587.0 million US dollars in the corresponding period in 2019, owing to relatively low external financial inflows.
The value of non-traditional exports increased by 1,124.8 million US dollars to 5,294.0 million US dollars in 2020 from 4,169.2 million US dollars registered in 2019, mainly due to good performance in horticultural products, manufactured goods and all minerals save for diamond.
During the period, gold exports increased by 33.5 percent to 2,957.5 million US dollars and accounted for 55.9 percent of non-traditional exports, following increase in both volume and price.
On month-to-month, export value of non-traditional exports rose to 457.0 million US dollars from 447.8 million US dollars in the corresponding month of 2019, largely explained by increase in exports of minerals.
Services receipts amounted to 2,380.6 million US dollars in 2020 lower than 4,281.0 million US dollars recorded in 2019, owing to decrease in travel receipts.
The travel receipts declined by 59.2 percent to 1,061.6 million US dollars explained by measures taken by most of countries to limit the spread of Covid-19, which included lockdown and suspension of international passenger flights.
Accordingly, the number of international tourist arrivals declined to 616,491 from 1,527,230 visitors recorded in the year ending December 2019.
During December last year services receipts amounted to 234.7 million US dollars in comparison to 430.5 million US dollars in December 2019.
The value of exports of goods and services amounted to 8,809.3 million US dollars in the year ended December last year lower than 9,658.6 million US dollars registered in 2019, explained by decline in services receipts.
The value of exports of goods and services declined to 859.6 million US dollars in comparison to 923.4 million US dollars recorded in December 2019.
The value of traditional exports decreased to 819.1 million US dollars in 2020 from 834.6 million US dollars recorded in 2019, owing to decline in export values of coffee, cotton, tea and sisal.
The decline in coffee and cotton value manifested in export volume, following low production while sisal and tea exports declined on account of both low volume and prices.
The export values of cashew nuts and cloves increased due to volume effects, while that of tobacco was due to price effect.
On month to month, the value of traditional goods exports decreased to 135.5 million US dollars from 153.0 million US dollars in the corresponding month of 2019, largely explained by low exports of cashew nuts, tobacco, and sisal consistent with the export season for most of cash crops.
