SERVICES account recorded a surplus of 159.6 million US dollars (over 255bn/-) in the quarter ending September this year compared to 99.4 million US dollars (about 160bn/-) gained in the corresponding period last year largely because of a rise in service receipts that outweighed service payments.
According to the Bank of Tanzania (BoT) economic bulletin for the quarter ending September this year, the receipt account increased to 748.2 million US dollars (about 1.19tri/-) compared to 682.8 million US dollars (about 1.09tri/-) of the previous quarter, representing 9.6 per cent change.
Also in the period under review, payment account increased slightly to 588.6 million US dollars (about 941.7bn/-) which is 0.9 per cent change, compared to 583.4 million US dollars (about 933.4bn/-) of the preceding period. However, the income account continued to record a deficit that amounted to 81.1 million US dollars (about 130bn/-) compared to 64.2 million US dollars (over 100bn/-) of the corresponding quarter in 2011.
In the meantime, the world market prices of major commodities with exception of tea and white petroleum product including Jet/Kerosine and Premium Gasoline declined. According to the Bank report, the price of coffee declined due to an anticipated increase in production in Brazil and Vietnam following good weather.
Likewise, expectations of cotton bumper harvest in China and weak global demand by textile manufacturers contributed to the decline in the price of cotton. Furthermore, the price of cloves decreased mainly due to expectations of an increase in global output.
The price of tea increased on account of a decline in supply following unfavourable weather conditions in Kenya and Sri Lanka. The value of exports of goods was 1,355.2 million US dollars (over 2tri/-) compared to 1,273 million US dollars (about 2.04tri/-) recorded during the quarter ending June 2012.
The increase was on account of improved performance of non-traditional exports. During the quarter under review, the value of imported goods was 2,697.4 million US dollars (4.32tri/-) compared to 2,524.8 million US dollars (4.04tri/-) recorded in the previous quarter. All import sub-categories with the exception of industrial raw materials, and food and foodstuff recorded increases.