Goods, services imports decline
TANZANIA: IMPORTS of goods and services fell to 16,027.9 million US dollars for the year ending in June, down from 16,980.4 million US dollars in the same period last year, mainly due to a moderation in global commodity prices and lower freight costs.
According to the latest Bank of Tanzania (BoT) monthly economic review, the stabilisation of prices and transportation costs contributed to more stable market conditions.
For instance, in June this year, crude oil prices averaged 81.21 US dollars per barrel, slightly lower than May’s average of 81.45 US dollars per barrel.
This decrease was influenced by a cease-fire in the Middle East and slowing demand in the United States.
In contrast, prices for several agricultural commodities, including coffee, palm oil, sugar, rice and tea, increased during the same period.
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The rise in coffee prices was driven by high demand and lower harvests due to adverse weather conditions, while palm oil prices rose due to heightened demand in the Asian market.
Sugar prices also increased as major producers like India and Brazil shifted from sugar production to ethanol.
The Bank report said further that service payments dropped by 11.5 per cent to 2,242.5 million US dollars, largely due to reduced freight costs for imported goods, which accounted for 53.2 per cent of total annual service payments.
The primary income account recorded a deficit of 1,743.7 million US dollars in June, an increase of 24.3 per cent from the previous year, mainly due to interest payments on foreign debts.
On a monthly basis, the deficit expanded to 181.1 million US dollars in June this year, compared to 132.6 million US dollars in June last year.
Additionally, the surplus in the secondary income account decreased to 588.6 million US dollars for the year ending in June, down from 647.4 million US dollars the previous year.
The monthly surplus also dropped to 45 million US dollars from 102.7 million US dollars in June last year.
