$180m deficit recorded in balance of payments: BoT

Dar es Salaam. The balance of payments had a deficit of $183 million in the year to August 31, 2018 compared with a surplus of $1,788.8 million in the year to August 31, 2017.

A recent Bank of Tanzania (BoT) economic review shows that the change was a result of the widening of the current account deficit to $2,008.5 million from $1,189.6 million during the same period.

That happened due to increases imports. According to the review, import bill for goods and services was $10,296.1 million in year to August 31, 2018 from $9,534.6 million in the year to August 31, 2017.

Goods imports amounted to $8,079.9 million, higher than in the year to August 31, 2017 by 7 per cent. Imports of capital and intermediate goods increased by 36.1 per cent and 38.3 per cent respectively during the same period.

Increased imports in capital goods showed more investment in infrastructure projects.

The value of oil imports was $1,999.3 million and accounted 24.7 per cent of total imports of goods. Earnings from exports of goods and services amounted to $8,808.4 million during the year, almost unchanged from the preceding year. Traditional goods exports amounted to $1,157.1 million compared with $852.1 million.

The services account recorded a surplus of $1,581.1 million in the year to August 31, 2018 compared with a surplus of $1,858.9 million in the year to August 31, 2017.

According to Investopedia, the balance of payments, also known as balance of international payments, summarises all transactions that a country’s individuals, companies and government bodies complete with individuals, companies and government bodies outside the country. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments such as foreign aid and remittances.