THE overall balance of payments improved to a surplus of 699.6 million US dollars in year ending January compared to a deficit of 861.3 million US dollars in the corresponding period of 2019, on account of the narrowing of current account.
According to the Bank of Tanzania (BoT) monthly economic review for January, the current account deficit narrowed to 1,137.2 million US dollars from 2,314.2 million US dollars in the corresponding period a year before owing to higher export earnings, which more than offset the increase in import bill.
During the reference period, the value of exports of goods and services rose to 9,915.6 million US dollars compared with 8,262.7 million US dollars recorded in corresponding period of 2019 due to increase in both value of good exports and service receipts.
The value of traditional goods exports rose to 935.4 million US dollars in the year ending January from 591.7 million US dollars in the corresponding period of 2019, following increase in exports value of all traditional exports save for coffee, sisal, tea and tobacco.
Cashew nuts export rose on account of an increase in volume that outweighed the impact of decrease in unit prices.
The increase in export value for cotton was mainly due to improved export volumes, supported by good weather during the crop season.
Conversely, weak performance of tobacco was due to low export volume and unit prices. The price movements of traditional exports were broadly in line with developments in the world market.
Likewise, the value of nontraditional goods exports improved to 4,292.5 million US dollars in year ending January compared to 3,270.1 million US dollars in the corresponding period in 2019.
All categories of non-traditional goods exports recorded an increase, except diamond, cotton yarn and manufactured coffee.
During the period under review, gold that accounted for 53.0 percent of non-traditional exports, increased by 45.6 percent to 2,276.9 million US dollars resulting from an increase in volume and price in the world market.
The increase in volume of exported gold is partly associated with government efforts among others establishment of mineral trading centres.
Similarly, manufactured goods grew by 19.3 percent to USD 974.9 million as a result of good performance in exports of iron and steel products, glass and glassware, manufactured tobacco and fertilisers
