Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania's Current Account Sees Fluctuations: Goods and Services Surge, Current Account Balance Dips
November 7, 2023  
Tanzania's Current Account, which is a part of the country's balance of payments. The Current Account measures the flow of goods, services, income, and current transfers in and out of a country. The "Goods Account" and the "Current Account Balance" have seen significant changes, with the former decreasing and the latter also showing a substantial […]

Tanzania's Current Account, which is a part of the country's balance of payments. The Current Account measures the flow of goods, services, income, and current transfers in and out of a country.

The "Goods Account" and the "Current Account Balance" have seen significant changes, with the former decreasing and the latter also showing a substantial decrease in the 1-month period.

Please note that negative values indicate deficits in these accounts.

Goods Account:

  • On 22nd September, it was -738.6 million units of the currency.
  • On 23rd August, it was -404.4 million units of the currency.
  • On 23rd September, it was -475.3 million units of the currency.
  • In the 1-month period from 23rd August to 23rd September, it decreased by 45.25%.
  • In the 1-year period from 23rd September (of the previous year) to 23rd September, it increased by 17.53%.

 Services Account:

  • On 22nd September, it was 177.17 million units of the currency.
  • On 23rd August, it was 356.6 million units of the currency.
  • On 23rd September, it was 338.9 million units of the currency.
  • In the 1-month period from 23rd August to 23rd September, it increased by 101.28%.
  • In the 1-year period from 23rd September (of the previous year) to 23rd September, it decreased by -4.96%.

Goods and Services:

  • On 22nd September, it was -561.4 million units of the currency.
  • On 23rd August, it was -47.8 million units of the currency.
  • On 23rd September, it was -136.5 million units of the currency.
  • In the 1-month period from 23rd August to 23rd September, it decreased by 91.49%.
  • In the 1-year period from 23rd September (of the previous year) to 23rd September, it increased by 185.56%.

Primary Income Account:

  • On 22nd September, it was -81.9 million units of the currency.
  • On 23rd August, it was -87 million units of the currency.
  • On 23rd September, it was -86.1 million units of the currency.
  • In the 1-month period from 23rd August to 23rd September, it increased by 6.23%.
  • In the 1-year period from 23rd September (of the previous year) to 23rd September, it decreased by -1.03%.

Secondary Income Account:

  • On 22nd September, it was 44.6 million units of the currency.
  • On 23rd August, it was 49.6 million units of the currency.
  • On 23rd September, it was 50.3 million units of the currency.
  • In the 1-month period from 23rd August to 23rd September, it increased by 11.21%.
  • In the 1-year period from 23rd September (of the previous year) to 23rd September, it increased by 1.41%.

Current Account Balance:

  • On 22nd September, it was -598.7 million units of the currency.
  • On 23rd August, it was -85.2 million units of the currency.
  • On 23rd September, it was -172.2 million units of the currency.
  • In the 1-month period from 23rd August to 23rd September, it decreased by 85.77%.
  • In the 1-year period from 23rd September (of the previous year) to 23rd September, it increased by 102.11%.

Tanzania's economy has experienced changes in its trade balance and current account position, particularly over the past month. The country's economic situation can be influenced by both domestic and international factors, and these changes may reflect the impact of global economic trends, commodity prices, and the performance of key sectors like tourism and services:

Goods and Services:

The combined "Goods and Services" account shows a substantial change over the past year, with a significant increase of 185.56%. This shows that Tanzania has experienced a notable change in its trade balance, likely due to shifts in the export and import of goods and services.

Goods Account:

The "Goods Account" has seen a 45.25% decrease in just one month. A decrease in the goods account could indicate a decline in the trade balance, which might be influenced by factors such as changes in commodity prices, export demand, or import levels. The 17.53% increase over the past year may be indicative of longer-term economic trends.

Services Account:

The "Services Account" increased by 101.28% in the span of one month, which is a significant change. This could be related to changes in the tourism industry, which is an important sector for Tanzania. The 1-year decrease of -4.96% may reflect the impact of the global economic environment on the services sector.

Current Account Balance:

The "Current Account Balance" has seen a substantial decrease of 85.77% in just one month, indicating that Tanzania's current account deficit has worsened in a short time frame. However, over the past year, it increased by 102.11%, which shows that the situation may have been better compared to the previous year.

Primary Income Account:

This account shows a small increase of 6.23% in one month but has decreased by -1.03% over the past year. This might reflect changes in income flows, such as remittances or foreign investment returns.

Secondary Income Account:

The "Secondary Income Account" has increased by 11.21% in one month and 1.41% over the past year. This may be related to factors like aid, grants, or other transfers.

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