2018-11-16 Negative balance of payments widens, new BoT report shows

Friday November 16 2018

Dar es Salaam. Increased capital goods imports, mainly related to infrastructure projects and the rise of oil prices in the global market, have continued to widen the balance of payments deficit.

The growing BoP deficit was also partly on account of widening of the current account deficit.

The current account deficit nearly doubled to $2,159.0 million in the year ending September  2018 from $1,192.5 million in the year ending September 2017, largely accounted by increase in imports, particularly transport equipment and building and construction.

The BoT report has said the growing BoP deficit was a result of aggressive imports of capital goods for infrastructure projects including Standard Gauge Railway (SGR), roads and bridges, ports, airports as well as an increase of world market’s fuel price.