The Bank of Tanzania (BOT) released its Monthly Economic Review-January 2024 which covers key macroeconomic indicators for the year ending December 2023.
External Sector Performance
In the year ending December 2023, the current account deficit narrowed to USD 2,855.3 million, compared with USD 5,378.5 million in the preceding period in 2022.
The outturn was largely on account of earnings from tourism activities and non-traditional exports coupled with the decline in commodity prices, particularly oil.
Foreign Exchange Reserves
On foreign exchange reserves, the stock was USD 5,450.1 million compared with USD 5,177.2 million at the end of December 2022.
The reserves were adequate to cover about 4.5 months of projected imports of goods and services, above the country’s benchmark of 4 months.
Exports
The export of goods and services exhibited a rising trend throughout 2023, increasing by 16.6% to USD 13,976 million in the year ending December 2023 from the level recorded in the preceding year.
The performance was largely contributed by tourism receipts, gold, and traditional exports.
Non-traditional Goods and Mineral Exports
Export of non-traditional goods grew by 4.3% to USD 6,320.4 million, with much of the increase registered in gold exports.
Exports of gold rose to USD 3,058.9 million compared with USD 2,835.1 million in the year ending December 2022, on account of both volume and price effects.
The increase was also registered in exports of oil seeds and horticulture, particularly edible vegetables.
Traditional Exports
The export of traditional goods edged up to USD 953.1 million from USD 766.5 million, largely driven by exports of coffee and tobacco.
Service and Tourism Receipts
Service receipts amounted to USD 6,280.8 million from USD 4,762 million in the year ending December 2023, driven by travel (tourism) and transport receipts.
Tourism receipts reached USD 3,368.7 million in 2023, compared to USD 2,527.8 million in 2022 (USD 1,310.3 million in 2021). This marks the highest amount ever earned in the history of tourism in Tanzania.
The surge in travel receipts reflects the rebound of the tourism sector, with tourist arrivals increasing by 24.3% to a record-breaking 1,808,205.
On a monthly basis, service receipts were USD 611.9 million compared with USD 459.6 million in December 2022.
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