Tanzania's exports have been steadily increasing over the past two years, which is a positive sign for its international trade performance. However, imports have also grown, leading to trade deficits in both years, although the trade deficit improved in 2023 compared to 2022.

Export of Goods and Services:

• In 2021, the total export value was 9,446 (in millions of units, typically currency).
• In 2022, it increased to 11,555, showing a 22% growth compared to 2021.
• In 2023, it further increased to 13,415, representing a 16% growth compared to 2022.
• The one-year change from 2022 to 2023 indicates a 16% increase.
• The two-year change from 2021 to 2023 shows a significant 42% increase in exports.

Import of Goods and Services:

• In 2021, the total import value was 10,420.
• In 2022, it increased significantly to 15,633, demonstrating a 50% growth compared to 2021.
• In 2023, it further increased to 16,157, which is a 3% growth compared to 2022.
• The one-year change from 2022 to 2023 indicates a 3% increase.
• The two-year change from 2021 to 2023 reflects a substantial 55% increase in imports.

Balance of Payments:

• In 2021, the balance of payments was -974.5, indicating a trade deficit.
• In 2022, this trade deficit increased significantly to -4,077.7.
• In 2023, the trade deficit decreased to -2,741.9, representing a 33% reduction compared to 2022.
• The one-year change from 2022 to 2023 indicates a 33% improvement in the balance of payments.
• The two-year change from 2021 to 2023 still shows a substantial trade deficit, but it has decreased by 181%.

Tanzania's trade and balance of payments for August 2023 provides insights into the country's economic performance in the context of international trade.

Tanzania’s trade indicates positive growth in exports and a reduction in the trade deficit, which are generally favorable for Tanzania's economic performance. However, the country continues to face challenges related to trade imbalances.

Export Growth:

Tanzania has experienced consistent growth in its exports of goods and services over the past two years. The year-over-year increase from 2022 to 2023 was 16%, and the two-year change from 2021 to 2023 was a substantial 42%. This shows that Tanzanian businesses have been successful in expanding their international markets and increasing their export capacity, which can be seen as a positive indicator of economic performance.

Import Growth:

Imports of goods and services also increased, with a significant 55% growth from 2021 to 2023. While the one-year change from 2022 to 2023 was relatively modest at 3%, the overall trend indicates a growing demand for foreign goods and services in Tanzania. However, such rapid import growth can put pressure on the balance of payments.

Balance of Payments Improvement:

The balance of payments, which measures the difference between exports and imports, saw a notable improvement in 2023. The trade deficit decreased by 33% from 2022 to 2023. While Tanzania still had a trade deficit, the reduction in the deficit is a positive development, indicating that the country's trade balance has improved, which can have favorable implications for its external financial stability.

Challenges Remain:

Despite the improvement in the balance of payments, the data shows that Tanzania still faces a trade deficit, as indicated by the negative balance of payments. A trade deficit means that the value of imports exceeds the value of exports, and this can put pressure on foreign exchange reserves and the overall balance of payments. Addressing this trade deficit remains a challenge.