Zanzibar’s current account deficit widens to $359.8 million in January 2023

Zanzibar’s current account deficit widened to $359.8 million during January 2023, from $237.4 million registered during the similar period last year according to the Bank of Tanzania (BoT) Monthly Economic Review for February, 2023.

The development was largely associated with an increase in imports bill with the value of imports of goods and services rising to $562.8 million from $408.6 million recorded in January 2022, largely due to increase in imports of intermediate and consumer goods

According to BoT figures, intermediate goods imports rose to $377.6 million from $254.5 million, driven by increase in imports of iron, steel, plastic articles, refined white petroleum and wheat.

“The increase in imports of consumer goods was attributable to food and beverages mainly for household consumption, non-industrial transport equipment and other consumer good sub categories,” the report said.

On month-to-month imports (f.o.b) amounted to $38.7 million in January 2023, compared with $32.6 million in January 2022.

Exports

Meanwhile the value of exports of goods and services, during January 2023 rose to 193.8 million from 157.4 million recorded during the similar period last year, largely due to an increase in service receipts, particularly from tourism.

The exports of goods recorded an annual decline of 13.8 percent to $69.4 million in the year ending January 2023, driven by cloves, fish and fish products.

Cloves exports however declined to $43.7 million, from $59.7 million recorded in the corresponding period in 2022, due to cyclical nature of the crop.

On month-to-month basis, goods worth $3.8 million were exported in January 2023 compared with $10.9 million recorded in January 2022.