Intermediate and consumer goods pushed up goods and services imports to 10,516.0 million US dollars in the year ended March from 10,178.8 million US dollars in the corresponding period 2019.
According to the latest Bank of Tanzania (BoT), report, much of the increase in imports of intermediate goods manifested in oil import bill, which accounted for about 20.8 percent of goods import.
The import bill of oil rose by 6.5 percent to 1,809.3 million US dollars, on account of volume. During the reference period, imports of goods and services amounted to 749.3 million US dollars in March compared with 823.1 million US dollars in the preceding month and 821.0 million US dollars in the corresponding month in 2019.
Decrease in import bill of goods manifested in oil imports as available stock was adequate, together with decline in prices in the world market.
Services payment rose by 1.4 percent to 1,819.5 million US dollars in the year ending March from the corresponding period in 2019, mostly on account of increase in transport payments particularly freight, which grew by 16.0 percent consistent with the increase in goods import.
On monthly basis, service payment declined to 124.9 million US dollars in March compared with 148.4 million US dollars in February and 139.5 million US dollars in March 2019, driven by travel payment, following tightened overseas travel ban to contain the spread of Covid-19.
The primary income account, which comprises income from capital related transactions and compensation of employees, was a deficit of 863.6 million US dollars in the year ending March compared with a deficit of 654.9 million US dollars in the corresponding period in 2019, largely due to increase in debt service.
On monthly basis, deficit in primary income account narrowed to 38.5 million US dollars in March compared with, 83.6 million US dollars in corresponding month 2019.
Nevertheless, the deficit worsened when compared with the preceding month in 2020, corresponding to increase in government.