World Economy

Tanzania Current A/C Deficit Shrinks

Tanzania Current A/C Deficit ShrinksTanzania Current A/C Deficit Shrinks

Tanzania’s central bank revealed that its current account deficit shrank by $580 million to $335 million during the quarter ending June 2017. This is compared with the $915.6 million deficit experienced in the corresponding quarter last year, AllAfrica reported. According to the Bank of Tanzania, the drop was mainly attributed to a fall in imports partly associated with the implementation of the East Africa Community Single Custom Territory combined with an increase in secondary income inflows; particularly official transfers. The bank shows export earnings in the quarter ending June 2017 amounted to $1.959 billion, a $697.9 million increase from the amount attained in the first quarter March 2017 (which was $1.261 billion) but a weakening from $2.031 billion recorded in the second quarter June 2016. The decline was driven by plunge in exports of traditional, non-traditional goods and manufactured goods exports. “The decline in the value of traditional goods exports was driven by volume, while non-traditional export earnings declined following low export performance of manufactured goods, re-export and some items under ‘other exports’ sub group,” BoT said.

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