Trade deficit declines by marginal 2 percent

KATHMANDU, MARCH 11: Nepal’s trade deficit decreased 1.8 percent to Rs 811.11 billion in the first seven months of the current fiscal year. According to the Current Macroeconomic and Financial Situation Report of Nepal released by Nepal Rastra Bank yesterday, the very decline was because of a downturn in exports as well as imports.  The trade deficit had decreased 18.7 percent in the corresponding period last year.

The export-import ratio went down to 9.7 percent from 10.2 percent in the corresponding period of the previous year in the review period.  Merchandise exports plummeted by 7.1 percent to Rs 86.83 billion compared to a decrease of 29 percent in the same period last year.

From mid-July to mid-February of 2023/24,  exports to India and other countries nosedived by 11.3 percent and 2 percent whereas exports to China surged by 338.8 percent. Exports of zinc sheets, particle boards, juice, readymade garments, and ginger, among other products, increased whereas exports of palm oil, soybean oil, cardamom, tea, woolen carpet, etc decreased.

During the review period, imports from India and other countries plunged by 2.8 percent and 23.8 percent respectively while imports from China rose to 38.4 percent. Imports of readymade garments, transport equipment, vehicle and other vehicle spare parts, aircraft spare parts, electrical equipment, MS wire rod, bars, and coils, among others, increased whereas imports of crude soybean oil, gold, rice/paddy, petroleum products, crude palm oil, etc, went down.