ANNUAL VALUE OF EXPORTS OF GOODS AND SERVICES INCREASES BY 5.2%

Annual value of exports of goods and services has increased by 5.2 percent to $9,381.6million in December 2016. The increase came from improved performance across the major exports, save for manufactured goods exports that slightly declined.

Annual value of traditional export rose by 11.6 percent to $885.6million in December 2016 from the corresponding period in 2015, according to the Bank of Tanzania (BOT) monthly economic review for January, 2017.

The report shows that except for coffee and sisal, all other export crops increased. Moreover export value of cotton, tea, tobacco and cashew nuts increased on account of both volume and price. Cloves export also improved due to volume, as price declined. Decreases in the value of coffee and sisal exports were driven by fall in price and volume, respectively.

To a large degree, prices of the traditional exports were consistent with the general trend in commodity prices in world market. Non-traditional exports amounted to $4,286million, up from $4,117.9million in the year ending December 2015.

Much of the increase came from exports of gold, horticultural products, and re-exports. Export of gold, which dominated other non-traditional exports, increased by 22.5percent to $1, 449.4million, owing to a steady recovery in price in the world market and increase in export volume.

By contrast, export of manufactured goods dropped by 20percent to $1,092.1million. Commodities that recorded large declines include edible oil, plastic goods, ceramic, and glassware products. Re-exports increased by 24.4 percent to $480million, most of which occurred in submersible drilling equipment, fertilisers, and motor vehicles.

Moreover, foreign exchange earnings from services increased to $3,687.3million from $3,524.9million in the year ended 2015, primarily driven by travel and transportation receipts.

According to the report, travel receipts rose by 11 percent to $2,231.4million as a result of increase in number of tourist arrivals, whilst transport receipts improved by 2.7 percent to $1,051million.