Tanzania is experiencing challenges in its external trade, with a notable increase in the current account deficit. Policymakers and economists may need to examine these trends to formulate strategies that address the trade imbalances and promote economic stability.
- Tanzania is facing an increased trade deficit, especially in goods, as seen in the Goods Account and the overall Goods and Services balance.
- The Services Account has also contributed to the decline in the overall trade balance.
- While there is stability in the Primary Income Account, there is a slight increase in transfers in the Secondary Income Account.
- The overall Current Account Balance has worsened, with a larger deficit compared to both the previous month and the same period last year.
Tanzania's Current Account and the key insights about the country's economic situation:
Goods Account:
- There has been a decrease in the Goods Account balance from September to October, leading to a higher trade deficit.
- The one-year change shows an increase in the trade deficit compared to the same period last year.
Services Account:
- The Services Account has experienced a significant decrease in one month, indicating a notable change in the balance of trade in services.
- The one-year change is negative, suggesting a decline in the Services Account balance compared to the same period last year.
Goods and Services:
- The combined balance of trade in both goods and services has shown a substantial decrease, indicating an overall decline in the trade balance.
Primary Income Account:
- There is no change in the Primary Income Account from September to October.
- The one-year change is negative, suggesting a slight decrease in income flows compared to the same period last year.
Secondary Income Account:
- The Secondary Income Account has experienced a small increase in one month, indicating a rise in transfers that do not result in goods or services.
- The one-year change is positive but relatively small.
Current Account Balance:
- The overall Current Account Balance has decreased significantly from September to October, pointing to a larger current account deficit.
- The one-year change is positive, indicating a higher deficit compared to the same period last year.
Tanzania's Current Account for different time periods, and it includes components such as the Goods account, Services account, Primary income account, Secondary income account, and the overall Current account balance:
Goods Account:
- 22-Oct: -620.9
- 23-Sep: -477.6
- 23-Oct: -612.5
- 1 Month Change: -23.08%
- 1 Year Change: 28.25%
The Goods Account represents the balance of trade in physical goods. A negative value indicates a trade deficit, meaning that the country is importing more goods than it is exporting.
Services Account:
- 22-Oct: 229.83
- 23-Sep: 381.7
- 23-Oct: 334.9
- 1 Month Change: 66.08%
- 1 Year Change: -12.26%
The Services Account includes the balance of trade in services. It shows the difference between the value of services exported and imported. A positive value shows a surplus in services.
Goods and Services:
- 22-Oct: -391
- 23-Sep: -95.8
- 23-Oct: -277.6
- 1 Month Change: -75.50%
- 1 Year Change: 189.77%
This represents the combined balance of trade in both goods and services.
Primary Income Account:
- 22-Oct: -101.2
- 23-Sep: -101.2
- 23-Oct: -99.8
- 1 Month Change: 0.00%
- 1 Year Change: -1.38%
The Primary Income Account reflects income flows, such as profits and dividends, between residents and non-residents.
Secondary Income Account:
- 22-Oct: 45.3
- 23-Sep: 48.5
- 23-Oct: 48.7
- 1 Month Change: 7.06%
- 1 Year Change: 0.41%
The Secondary Income Account includes transfers that do not result in any goods, services, or financial assets in return.
Current Account Balance:
- 22-Oct: -446.9
- 23-Sep: -148.5
- 23-Oct: -328.6
- 1 Month Change: -66.77%
- 1 Year Change: 121.28%
The Current Account Balance is the sum of all the accounts mentioned above. A negative value indicates a current account deficit, meaning that the country is importing more than it is exporting, and the deficit is funded by capital inflows.
