Decline in volume and prices of traditional and nontraditional goods in the year ended November last year made the export earnings to decrease to 8,531.5 million US dollars from 8,731.4 million US dollars in the corresponding period in 2017.
The Bank of Tanzania (BoT) monthly economic review for December shows the value of nontraditional goods exports declined by 9.7 percent to 3,239.0 million US dollars with all of its major categories recording declines, save for horticultural products.
Earnings from gold export, the major nontraditional goods dropped to 1,553.2 million US dollars in the period under review compared to 1,580.2 million US dollars in the preceding year, on account of a decline in volume.
Manufactured goods export income decreased by 4.4 per cent to 816.1 million US dollars in the year to November 2018, largely following decline in earnings from export of textiles, cotton yarn, footwear, fertiliser, edible oil, cement, sisal and tobacco products.
The value of traditional goods exports declined by 1.0 per cent to 885.5 million US dollars in the period under review, on fall of earnings from tea, cashew nuts and cloves exports.
Cashew nuts, the most valuable export crop for Tanzania export earnings dropped due to volume decline associated with government decision to halt raw cashew exports and opt for in-country processing of the crop.
Meanwhile, the decrease in the value of tea exports was on account of a decline in both volume and price.
Cotton registered significant increase in export value owing to a surge in volume following good harvest in 2017/18 crop season, as well as higher price in the world market.
The decline of the export earnings contributed to the widening of the overall balance of payments was a deficit of 753.0 million US dollars in the year ending November 2018 compared to a surplus of 1,749.8 million US dollars in the corresponding period in 2017, partly explained by widening of current account deficit.