Z’bar current account deficit narrows

Image result for zanzibar botZanzibar's current account deficit narrowed to 72.8 million US dollars in the year ended December last year, compared with 82 million US dollars in the corresponding period in 2013, thanks to the increase in cloves export earnings and receipts from tourism.

According to the Bank of Tanzania (BoT) monthly economic review shows that the value of exports of goods and services rose to 297.2 million US dollars compared with 179.5 million US dollars of the previous period.

Goods exports increased to 95.5 million US dollars from 60.2 million US dollars, on account of increase in both cloves exports volume and the corresponding export prices.

Specifically, cloves exports increased to 53 million US dollars from 43 million US dollars. In terms of share of goods exports, cloves continued to dominate, accounting for 55.5 percent.

Services account registered a surplus of 54.7 million US dollars compared with a surplus of 30.2 million US dollars in 2013, largely on account of increased earnings from tourism related activities.

Similarly during the period under review, the value of imports of goods and services increased to 380 million US dollars from 300.2 million US dollars in 2013.

Goods imports was 233 million US dollars compared with 211.1 million US dollars in the year ended 2013, mainly driven by an increase in the value of capital and consumer goods.

Meanwhile, current transfers recorded a surplus of USD 12.2 million compared with USD 44.2 million, mainly driven by decline in grants.

Revenue collections during December amounted to 32.2bn/- or 14.5 per cent below the target while tax revenue amounted to 26.8bn/- and was below the target by 24.3 per cent.

In terms of percentage contribution to total revenue, tax on imports continued to account for the largest proportion, followed by VAT and excise duties (local).
Source: Daily News, reported from Dar es Salaam, Tanzania
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