The strong export performance played a decisive role in narrowing the annual current account deficit through October, indicating a significant improvement in the country's external balance of payments as stronger foreign exchange earnings helped offset import pressures. During this period, the annual current account deficit narrowed to $2.22 billion through October, down from $2.89 billion last year, equivalent to 2.4% of GDP—a marked improvement from the 2022 level exceeding 6% of GDP. Additionally, moderate import demand and enhanced inflows of external funds contributed to the narrowing of the current account deficit, signaling stronger macroeconomic stability and more sustainable balance of payments conditions. The latest monthly economic assessment report from the Bank of Tanzania noted that this improvement was primarily driven by exports, with increased revenues from major agricultural exports such as gold, tourism services, cashews, and tobacco, which strengthened the balance of payments and consolidated the country's external position. This export-led recovery indicates higher foreign exchange inflows and reduced external financing pressures, enhancing macroeconomic stability during a period of global uncertainty and highlighting the growing importance of goods and services exports in supporting Tanzania's external resilience.
