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THE current account deficit widened to 1,414.2 million US dollars from 1,127.0 million US dollars in a similar period last year on account of the decline in tourism receipts.
According to the Bank of Tanzania (BoT) monthly economic review for July, services receipts declined by 31.2 per cent to 2,392.4 million US dollars while travel receipts that account for 36.5 per cent of total service receipts, fell by 54.0 per cent to 873.6 million US dollars as countries adopted lockdown measures to limit the spread of Covid-19.
The number of international arrivals declined to 638,389 from 1,230,455 in the year to last year. On a monthly basis, in June this year services receipts increased to 221.3 million US dollars compared to 110.0 million US dollars in June last year attributed to an increase in travel receipts.
During the reference period, the current account widened in spite of benefiting from increased gold exports which accounted for 54.4 per cent of total non-traditional exports, rising by 437.5 million US dollars to 3,028.8 million US dollars the highest level of earnings ever reached.
This was attributed to an increase in gold prices in the world market and ongoing government initiatives to revamp the mining sector.
The value of non-traditional exports rose to 5,567.8 million US dollars from 4,574.9 million US dollars with a significant increase registered in exports of gold, manufactured goods, horticultural products and other exports.
The value of manufactured goods increased by 36.2 per cent to 1,090.0 million US dollars while horticultural products increased to 324.6 million US dollars compared with 194.6 million US dollars in a similar period last year. On a month-to-month basis, the export value of non-traditional goods increased to 525.7 million US dollars from 406.8 million US dollars in June last year owing to an increase in other exports particularly rice and oilseeds.
The overall balance of payments was a surplus of 106.0 million US dollars compared to a surplus of 755.0 million US dollars reflecting relatively low external financial inflows.
The value of traditional exports was 578.4 million US dollars lower than 995.9 million US dollars in the corresponding period last year.
The decline was observed in all traditional export crops save for coffee and sisal. On a monthly basis, traditional exports remained broadly the same around 14.1 million US dollars.
The value of exports of goods and services amounted to 8,850.3 million US dollars compared with 9,347.4 million US dollars during a similar period last year. The decline was observed in travel receipts, due to the effects of the pandemic.
Meanwhile, exports of goods increased by 10.0 per cent to 6,457.9 million US dollars owing to the good performance of non-traditional exports.
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