THE exports of gold and horticultural products contributed to the narrowing of the current account deficit to 1,177.2 million US dollars compared to 1,443.6 million US dollars registered in the corresponding period last year.
According to the Bank of Tanzania (BoT) monthly economic review for May shows that the reduction in imports value of oil and transport equipment also contributed to the narrowing of the current account deficit.
The gold exports that accounted for 50.1 per cent of non-traditional exports, increased by 594.0 million US dollars to 3,030.5 million US dollars owing to higher prices in the world market and the government’s efforts to closely monitor the mining sector.
The value of non-traditional exports increased to 5,471.2 million US dollars from 4,333.8 million US dollars registered in the corresponding period last year mainly due to good performance of manufactured goods, horticultural products particularly edible vegetables and fruits, and all minerals except diamonds.
On a month-to-month basis, the export value of non-traditional exports rose to 481.0 million US dollars from 420.0 million US dollars in April last year mostly explained by an increase in mineral exports.
The overall balance of payments was a deficit of 290.2 million US dollars compared to a surplus of 995.2 million US dollars in the corresponding period last year on account of the decrease in financial inflows.
During the reference period, the value of exports of goods and services amounted to 8,544.4 million US dollars lower than 9,557.3 million US dollars recorded in the corresponding period last year largely explained by a decrease in services receipts.
The value of goods exports amounted to 6,349.2 million US dollars an increase of 12.0 per cent compared to the amount recorded in the corresponding period last year owing to satisfactory performance in non-traditional exports.
However, during the period under review, the value of traditional exports decreased to 576.3 million US dollars from 1,009.0 million US dollars last year on account of low values of all exported cash crops save for sisal and coffee.
The increase in the value of coffee exports was mainly due to a rise in the price of coffee in the world market.
Every month, the export value of traditional goods also decreased to 16.1 million US dollars from 30.5 million US dollars in the corresponding month last year mainly due to low export values of tobacco, cotton, tea and cloves.
Services receipts amounted to 2,195.2 million US dollars lower than 3,890.0 million US dollars in the corresponding period last year largely explained by a decrease in travel receipts.
Travel receipts declined by 67.3 per cent to 735.7 million US dollars due to containment measures instituted by various countries against the Covid-19 pandemic including lockdowns and travel restrictions.
Consequently, the number of international arrivals declined to 551,328 from 1,423,836 in the year to April last year. The services receipts increased to 193.0 million US dollars compared with 114.5 million US dollars in April last year owing to an increase in travel receipts.