THE imports of goods and services decreased to 9,498.5 million US dollars in the year ending September from 10,768.6 million US dollars in the corresponding period last year, contributed largely by the fall of global oil prices.
According to the Bank of Tanzania Monthly economic review for October, the oil imports declined to 1,451.6 million US dollars from 1,768.6 million US dollars and accounted for 18.4 per cent of goods import from 20.0 per cent.
The decrease of global oil prices was on account of a significant fall in prices in the world market.
During the period under review, the imports of goods decreased to 743.9 million US dollars from 820.2 million US dollars in the corresponding month last year, of which imports of oil amounted to 168.9 million US dollars, which is equivalent to 20.6 per cent.
However, the imports of fertilizers, industrial raw materials and consumer goods increased, while other imports decreased at varying magnitudes.
The annual services payments amounted to 1,614.7 million US dollars in September, lower than 1,883.8 million US dollars in the year ending September 2019 that was driven by travel payment, which dropped by 41.2 per cent to 396.5 million US dollars.
On month-to-month, services payments declined by 38.9 per cent to 94.7 million US dollars in September from 155.0 million US dollars in the corresponding month last year, attributable to low travel payments associated with containment measures to limit the spread of Covid-19.
The primary income account, which comprises income from compensation of employees and capital related transactions, widened to a deficit of 1,017.4 million US dollars from 992.6 million US dollars in the year ending September, largely due to decrease in income receipts.
On monthly basis, primary income account registered a deficit of 63.2 million US dollars in September, compared with a deficit of 62.6 million US dollars in the corresponding month in 2019.
Secondary income account, which captures unilateral current transfers, recorded a surplus of 376.5 million US dollars as compared to a surplus of 406.6 million US dollars in the corresponding period a year earlier.
On monthly basis, the secondary income account recorded a surplus of 0.4 million US dollars in September from a surplus of 33.5 million US dollars during the corresponding month last year, mainly due to decrease in official inflows.