Both imports, exports down in first two months of 2024/25

KATHMANDU: Nepal’s merchandise exports dropped by 9.6% to Rs 12.23 billion over the first two months of fiscal year 2024/25, compared to an 8.7% decline in the same period of the previous fiscal year.

According to the Current Macroeconomic Situation Report for the first two months of 2024/25 published by Nepal Rastra Bank (NRB) on Thursday, exports to all major markets fell during the review period. Exports to India fell by 10.6%, and to China and other countries by 59.8% and 3.5%, respectively.

Exports of products such as particle board, oil cakes, tea, woolen carpets and footwear increased during the review period, while there was a significant decline in the exports of products like cardamom, palm oil, zinc sheets, jute goods and readymade garments.

On the imports front, merchandise imports fell by a marginal 0.6% to Rs 128.38 billion. This compares to a 1.6% drop in the same period of the previous fiscal year. While imports from India fell by 4.4%, those from China and other countries were up by 12% and 0.4%, respectively.

Chemical fertilizers, transport equipment, vehicle parts, machinery and edible oil were the country’s major imports during the review period.

The trade deficit expanded by 0.4% to Rs 116.15 billion, a reversal from the 0.7% reduction in the deficit during the same period last year. Additionally, the export-import ratio weakened to 9.5%, down from 10.5% in the previous year.

In terms of composition, intermediate goods made up 54.6% of exports, while final consumption goods accounted for 44.3%. On the import side, intermediate goods comprised 50.7% of total imports, with capital goods at 9.2% and final consumption goods at 40.1%.