Z'bar current account deficit improves

Z'bar old town

An  increase  of clove export proceeds and tourist receipts have contributed significantly to improved Zanzibar's current account deficit to a surplus of 33.3 million US dollars (about 53.28bn/-) during March this year.

This is compared to a shortfall of 9.1 million US dollars (about 14.56bn/-) recorded a year before. 

The Bank of Tanzania (BoT) monthly economic review for April shows that the Zanzibar current account deficit narrowed to 1.6 million US dollars (about 2.56bn/-) from a shortfall of 2.5 million US dollars (about 4bn/-).

"This was largely on account of an upsurge in exports proceeds of cloves to 64.8 million US dollars from 7.3 million US dollars  recorded during the same period in the previous year," stated the bank report.

Similarly, the deficit in trade account narrowed to 62.8 million US dollars (about 100.48bn/-) in the year ending March this year, compared to a deficit of 86.1 million US dollars (about 137.76bn/-) recorded during the corresponding period in 2011, on account of an increase in cloves export proceeds.

During the year ending March 2012, export of goods and services amounted to 261.8 million (about 418.88bn/-) up from 140 million US dollars (about 224bn/-) posted during the corresponding period in the preceding year.

This indicates a significant increase in average export price of cloves from 3,591.4 US dollars (about 5.75m/-) per ton in the year ending March 2011 to 13,118.2 (about 20.98m/-) per ton during March 2012, following supply shocks in the world market.

During the same period, total goods imports increased by 42.6 per cent to 145 million US dollars (232bn/-) from 101.7 million US dollars (162.72bn/-).

Capital goods imports amounted to 57.9 million US dollars (92.64bn/-) from 40.3 million (64.48bn/-) recorded during the corresponding period in 2011.

In the meantime, consumer goods imports increased by 40.6 per cent to 27 million US dollars (43.2bn/-) from 9.2 million US dollars (14.72bn/-). 

On annual basis, services account registered a surplus of 54.1 million US dollars (86.56bn/-), up from a surplus of 37.8 million US dollars (60.48bn/-) earned in the corresponding period in 2011.

In the period under review, service receipts surged by 44.4 per cent from 124.4 million US dollars (199.04bn/-) to 179.6 million US dollars (287.36bn/-), reflecting increased exports of tourism related services. 

Also, foreign payments increased by 44.6 per cent to 125.4 million (200.64bn/-) from 86.7 million (138.72bn/-).

Source: The Daily News,http://dailynews.co.tz, reported by Sebastian Mrindoko

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