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Tanzania’s current account deficit narrows 4.7 pct in year to Jan
DAR ES SALAAM (Reuters) – Tanzania’s current account deficit narrowed 4.7 percent in the year to January, after exports of manufactured goods and tourism earnings increased, the central bank said on Monday.
The deficit narrowed to $4.822 billion in the 12 months to January from $5.059 billion in the same period in 2014, the Bank of Tanzania said in its latest monthly economic report.
“The improvement was mainly attributed to an increase in exports of goods and services as imports remained broadly unchanged,” the central bank said in the report.
The overall balance of payments reflected a deficit of $61.7 million in January, compared with a surplus of $534.8 million in the same period in 2014, the bank said.
Earnings from tourism, the main foreign exchange source, rose to $2.045 billion from $1.89 billion previously due to more visitor arrivals, the bank said, while exports of manufactured goods rose to $1.27 billion from $1.05 billion a year ago.
Exports were mainly edible oils, textiles, plastic goods, fertiliser and paper products, the bank said.
Earnings from gold another main source of foreign income, continued a downward spiral, falling 20.3 percent to $1.3 billion, reflecting lower export volumes and global prices. Tanzania is Africa’s fourth-largest gold producer after South Africa, Ghana and Mali.
The country’s total bill for imports of goods and services fell 0.9 percent in the 12 months through January to $13.54 billion, while the value of its exports of goods and services rose 3.8 percent to $8.85 billion, the bank said.
The bank said total foreign exchange reserves fell to $4.38 billion in the year to January, or about four months of import cover, from $4.5 billion a year ago.