Kathmandu, Dec 25: Nepal recorded a trade deficit of Rs 579 billion in the first five months of the current fiscal year, which is attributed to a notable fall in the import expenses. The records with the Department of Customs (DoC) show that the country’s trade deficit declined 3.09 percent during mid-July and mid-December this year. In the review period, Nepal spent Rs 22 billion less on purchase of goods from abroad compared to the same period of last year.
Amid ongoing economic slowdown in many countries including Nepal, both the exports from the country and import to the country declined. According to the DoC, Nepal’s exports earnings declined 6.09 percent to Rs 63.20 billion, while the import expenses fell 3.39 percent to Rs 642.20 billion.
The total volume of trade also declined over the period. The trade volume decreased 3.64 percent to Rs 705.41 billion. The country’s import expenses might have declined due to the fall in imports of the capital goods caused by the ongoing economic recession of the country. “If this is the situation, it will not yield better results for the country to achieve higher economic growth,” said trade experts.
On the other hand, the country’s potential in export earnings also went down in the successive months of the review period. The share of the country’s exports earnings in the first month of the fiscal year 2023/24 was 9.48 percent, while it came down to 8.96 percent last month.
Almost all of the major goods like palm oil, woolen carpet, tea, yarn and jute products, among others, witnessed a fall in exports. There was a significant decline in spending on the major import items like crude edible oil and iron and steel.
Comments