Tanzania current account deficit widens 4.3 pct in year to July

DAR ES SALAAM (Reuters) - Tanzania's current account deficit widened 4.3 percent to $4.23 billion in the year to July following a decline in receipts of aid and loans, its central bank said on Monday. "Official current transfers declined by 40.7 percent from the levels recorded in the year ending July 2012 following reduction in disbursements from the European Union, Sweden, Denmark and Finland," the central Bank of Tanzania said in its latest monthly economic review report. It did not explain the sharp fall in official current transfers which are composed of aid and loans from external sources, nor did it give the current account as a percentage of national output. The country's total imports bill fell by 0.7 percent to $12.877 billion, while exports increased by 1.3 percent to $8.269 billion from a year ago. However, the central bank said gold exports, the country's top foreign exchange earner, fell to 35 tonnes in the year to July from 40 tonnes previously. It did not give a value for revenues. Tanzania, with a population of around 45 million, is Africa's fourth-largest gold producer after South Africa, Ghana and Mali. Gold accounted for 48.4 percent of the country's total non-traditional exports, down from 54.9 percent a year ago. Tourism earnings increased 10 percent to $1.69 billion from $1.53 billion a year ago, on higher tourist arrivals. Gross official foreign exchange reserves held by the central bank rose to $4.353 billion in the year to July, or about 4 months of import cover, from $3.855 billion a year ago.