Trade deficit up by 22 percent

muskan

June 16, 2013, 9:19 a.m.

Kathmandu, June 16 – The country’s trade deficit has increased by 22.7 percent compared to the figure in the same period last year to cross Rs. 395.22 billion during the first ten months of the current fiscal.

According to the central bank, trade deficit with India increased by 26.2 percent during the review period compared to a growth of 14.4 percent in the same period of the previous year.

Similarly, trade deficit with other countries increased by 16.5 percent compared to an increase of 30.7 percent during the same period of the previous year.

Due to a rapid growth in imports, the ratio of export to import declined to 13.8 percent in the review period from 15.9 percent a year ago, said the bank.

During the review period, merchandise imports surged by 19.7 percent to Rs. 458.56 billion while such imports had risen by 19.2 percent to Rs. 383.01 billion during the corresponding period of the previous year.

The total imports has surged in the review period due mainly to the rapid increase in imports from India, said the bank. Imports from India went up by 22.1 percent during the review period compared to an increase of 14.9 percent in the same period of the previous year.

Likewise, imports from other countries rose by 15.3 percent compared to an increase of 27.9 percent in the corresponding period of the previous year.

However, merchandise exports registered an increment by 4 percent to Rs. 63.33 billion during ten months of 2012/13 while the same had had increased by 16.4 percent to Rs. 60.90 billion during the same period of the previous year.

The growth of total exports remained low in the review period due to the slowdown in exports to both India and other countries, according to the bank.

Exports to India increased by 1.9 percent during the review period compared to an increase of 17.6 percent in the corresponding period of the previous year while exports to other countries went up by 8.5 percent compared to an increase by 13.8 percent in the same period of the previous year.