IMPORTS surged nearly 18 per cent in the year through May, reflecting rising demand for industrial raw materials, fuel and capital equipment as the economy maintained strong growth momentum.
The latest Bank of Tanzania (BoT) Monthly Economic Review Report states the import bill rose to 20.4 billion US dollars (approximately 53.64tri/-) in the year ending May this year, up from 17.3 billion US dollars (about 45.56 tri/-) recorded in the corresponding period last year.
The report shows that imports of refined white petroleum products, which accounted for 13.0 per cent of the total goods import bill, increased by 9.9 per cent to 2.6 billion US dollars in the year ending May this year from 2.4 billion US dollars recorded in the corresponding period last year.
The increase was mainly attributed to higher global oil prices driven by geopolitical tensions in the Middle East. On a monthly basis, goods imports totalled 1.7 billion US dollars in May this year compared with 1.2 billion US dollars in May last year.
The increase was mainly driven by higher imports of industrial supplies and petroleum products. Meanwhile, service payments increased by 8.3 per cent to 3.3 billion US dollars in the year ending May this year from 3.1 billion US dollars in the corresponding period last year.
According to the report, the growth was primarily driven by higher freight payments, which rose by 17.9 per cent due to continued supply chain disruptions linked to geopolitical tensions in the Middle East. The increase in freight payments also reflected the higher value of goods imports during the period.
On a monthly basis, service payments stood at 278.8 million US dollars in May this year, up from 267.0 million US dollars recorded in May this year, largely reflecting higher freight payments. BoT reported that the primary income account deficit narrowed to 1.8 billion US dollars in the year ending May this year from 2.0 billion US dollars recorded in the corresponding period last year, mainly due to lower interest payments to non-residents.
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On a monthly basis, the primary income account deficit also eased, declining to 136.9 million US dollars in May this year from 158.2 million US dollars recorded in May last year.
Meanwhile, the secondary income account surplus declined to 350.4 million US dollars in the year ending May this year from 526.5 million US dollars in the corresponding period last year largely due to lower personal transfers. On a monthly basis, the secondary income account surplus stood at 55.3 million US dollars in May this year compared with 32.9 million US dollars recorded in May last year.