13 January 2013

Tanzania: Nation Facing U.S.$3.76 Billion Deficit

Dar es Salaam — Tanzania's current account has recorded a deficit of $3.76bn in the year ending November 2012 compared with a deficit of $3.60bn recorded in the corresponding period in 2011, the Bank of Tanzania (BoT) said.

BoT said that the widening of the current account deficit is mainly due to increase in imports that outweighed the impact of the increase in export of goods and services.

According to BoT, the value of export of goods and services amounted to $8.53bn during the year ending November 2012 compared with $7.38bn recorded during the corresponding period in 2011.

"The improved performance was attributed to an increase in receipts from travel, manufactured goods and traditional exports," the BoT governor, Prof Beno Ndulu said.

During the period under review, services receipt were $2.67bn compared with $2.29bn recorded in the corresponding period in 2011, largely driven by travel and transportation receipts.

The good performance in travel receipts is largely associated with the continued increase in international arrivals.

The overall balance of payments recorded a surplus of $402m, compared with a deficit of $281.1m recorded in the corresponding period a year earlier.

This development is mainly on account of an increase in inflows in the form of capital grants, foreign direct investments and foreign borrowing.

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