According to the Treasury's quarterly economic and budgetary review for the fourth quarter of the 2022/2023 financial year, the current account balance was supported by an improvement in the net merchandise account and the net secondary income balance despite a deterioration in the net primary income balance and net receipts on the services account.
The Treasury said that the balance in the merchandise account improved by 1.3 billion dollars mainly due to an improvement in the export earnings and a decline in the import bill.
The report said that in the period under review, exports grew 2.1 percent primarily driven by improved receipts from tea and manufactured goods.
"The increase in receipts from tea exports reflects improved prices attributed to demand from traditional markets. On the other hand, imports declined by 6.1 percent in the 12 months to June 2023, reflecting lower imports of infrastructure-related equipment due to completed projects," it said.
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