DAR ES SALAAM (Reuters) - Tanzania's current account deficit widened 10 percent to $1.91 billion in the year to May on increased buying of imports for use in sectors such as mining and manufacturing, the central bank said on Monday. Goods and services imports rose by 12 percent to $7.23 billion in the period in question, Bank of Tanzania (BOT) said in its latest monthly economic review. "Importation of capital goods increased ... in line with growth of activities in the construction, mining, communication and manufacturing sectors," the bank said. Exports of goods and services also jumped by 13 percent to $4.73 billion compared with a similar period in 2008, due to higher sales of manufactured goods. Gold exports dropped by 6 percent to $841.4 million, from the sale of 28.2 million tonnes of the metal, compared with 35.2 tonnes a year before that fetched $894.9 million. Gold constituted 38 percent of the east African economy's exports, the bank said. Manufactured goods made up 29 percent. Tourism -- classified as travel -- earned $1.24 billion, up from $1.21 billion a year before. The sector is Tanzania's leading foreign exchange earner. BOT sees it slowing by up to 20 percent this year due to the global economic downturn. Earnings from traditional exports -- coffee, tea, cashew nuts and tobacco among others - were up 41 percent to $479.8 million compared with a year before, while horticulture brought in $35.4 million from $23.4 million the previous year. While Tanzania largely depends on mining, agriculture and tourism, contribution from sectors like telecommunications, financial services and manufacturing has been rising in recent years. Credit to the private sector from banks rose by 32 percent to 4.68 trillion shillings, BOT said. The bank said in the year ending May, the country's official foreign exchange reserves stood at $2.68 billion -- or 4.2 months of import cover -- from $2.7 billion a year before. The bank's monetary policy aims for the country to have no less than five months of import cover in 2009/10. | 
