Strong exports are finally fixing the country's trade imbalance. Tanzania narrowed its current account deficit to 2.22 billion dollars for the year ending in October, down from 2.89 billion the previous year. This improvement, now at 2.4 percent of GDP, was driven by a surge in exports, hitting 17.04 billion dollars. Key earners were gold, tourism, and agricultural goods like cashew nuts and tobacco. The value of gold exports alone jumped 38.9 percent to 4.59 billion dollars, fueled by high global prices.
The Bank of Tanzania's report noted that import demand also cooled due to moderate world prices and more domestic production. This export-led recovery boosted foreign exchange reserves to about 6.17 billion dollars, enough to cover nearly five months of imports. The rising reserves, exceeding regional benchmarks, point to stronger economic stability and a buffer against global shocks. Traditional exports like tobacco and cashews saw a 25 percent increase, while cereal sales to neighboring countries also grew, highlighting a broad-based improvement in the country's external financial position.
The Bank of Tanzania's report noted that import demand also cooled due to moderate world prices and more domestic production. This export-led recovery boosted foreign exchange reserves to about 6.17 billion dollars, enough to cover nearly five months of imports. The rising reserves, exceeding regional benchmarks, point to stronger economic stability and a buffer against global shocks. Traditional exports like tobacco and cashews saw a 25 percent increase, while cereal sales to neighboring countries also grew, highlighting a broad-based improvement in the country's external financial position.
