The amount of credit extended to private sector slightly decreased by 9 percent during the year ending December last year as compared with year 2011, the Bank of Tanzania (BoT) has said in its monthly economic review released last week.
The review said 1,384.4bn/- was extended to the sector in December last year, compared to 1,630.6bn/- recorded in the year ending December 2011.
This represents a slowdown in the growth of private sector credit to 18.2 percent from 27.2 percent recorded in the year ending December 2011.
The deceleration in credit was recorded in all major economic activities, save for transport and communications, the review said.
In the year ending December 2012, trade activities accounted for the largest share, followed by personal, manufacturing and agriculture activities.
It further said deposits and lending rates by banks exhibited mixed developments in the year ending December 2012. Overall time deposits rates increased to 8.45 percent from 8.10 percent in November 2012, and 7.12 percent recorded in December 2011.
Overall lending rate reached a peak of 16.45 percent in October 2012, before easing to 15.53 percent in December 2012, it added.
The spread between 12-month deposit rate and one year lending rate narrowed to 4.06 percentage points in December 2012, compared to 4.86 percentage points in November 2012 and 4.59 percentage points in December 2011.
On external sector performance, the review noted that during the year ending December 2012, the current account deficit stood at USD3, 438.0m compared to USD3, 977.1m recorded in 2011.
Such performance was largely driven by an increase in exports volume for most of traditional cash crops including coffee, cotton and tobacco, improved export of manufactured goods, fish and fish products, horticultural products and re-exports.
The value of traditional exports during the period under review was USD956.7m compared to USD685.5m recorded in the year ending December 2011.This development was to a large extent associated with an increase in exports volume.
The increase in export volumes was on account of improved production for most of the agricultural commodities following favourable weather conditions.
Meanwhile, the review said export performance of five traditional commodities for the last three years increased slightly without further details.
The value of non-traditional exports was USD4, 242.9m, which was 13.2 percent higher than the level recorded during the year to December 2011.
This development was driven by an increase in exports of manufactured goods, fish and fish products, horticultural products and re-exports.
The value of gold exports recorded a marginal decline of 2.4 percent to USD2, 170.1m in 2012 due to fall in exports volume as prices of the metal in the world market remained high.