Business Report by Leo Odera Omolo
A report in this week’s edition of the influential weekly the EASTAFRICAN says that
Tanzania external trade deficit for the year ending February 2009 widened to USD 2,302 million from 1,796 million recorded in the same period last year
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This, according to the same report is a blow to that’s country’s economy which is also expected to suffer further from the global financial meltdown.

Already the effects of the economic slump are being felt in the country’s export sector, adds the report
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According to the latest bank of Tanzania monthly economic review this development was largely due to an increase in imports that outweighed the effects of rising exports
And according to the review, while imports of goods and services went up by USD 1,539 million, exports increased by USD 960 million.

The increase in imports was driven by capital and intermediate goods inline with the growth of activities in the costruction, communication and manufacturing and high average price of oil for the 12 months ending February 2009.

Most of the increase in exports came from manufactured goods which nearly doubled from USD 360.7 million reordered during the previous year to USD 631.9 million ,said the report .
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The value of horticultural exports albeit small in its share to total rose from USD 47.9 million..
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The massive growth was largely due to the expansion in horticultural production coupled with new investment in cut – flowers and seeds in the southern part of Tanzania.

During the period under review services receipt increased by 206 per cent to USD 2,363.9 million following improvement in Travel ,freight ,communication ,insurance and other business services receipts.

According to the monthly review, world market commodity prices in February this year recorded mixed development with prices of Arabica coffee recorded slight increase while the price of sisal remained constant at USD 1,213 per metric tone
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On the other hand the price of Robusta coffee, tea and cotton recorded marginal declines .The review further states that the average prices of crude oil (UK Brent) and Dubai (t.o.b) declined by about 4 per cent to USD 43.1 per barrel respectively..

The price of white products declined by 71 per cent to USD 421.9 per tonne this development was largely attributed to a scarce in the US crude oil inventories owing to drop in demand amid the global recession.
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The price of gold however increased by 9.8 per cent to USD 943.0 per troy once due to high investment demand for gold as a safe haven asset
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The review said that the animal headline inflation rate for the year 2009 rose to 13.3 per cent
Ends
Leooderaomolo@yahoo.com

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Date: Wed, 22 Apr 2009 03:20:02 -0700 [05:20:02 AM CDT]
From: Leo Odera Omolo
Subject: REPORTS SAYS TANZANIA TRADE DEFICIT IS WIDENING