Exports surge 57.2% in eight months

KATHMANDU: Nepal’s merchandise exports surged by 57.2% to Rs 158.17 billion in the first eight months of the current fiscal year 2024/25, according to the latest macroeconomic situation report released by the Nepal Rastra Bank (NRB) on Wednesday.

This marks a sharp rebound compared to a 4% decline in the same period last year.

Exports to India jumped by 82.5%, while exports to China and other countries rose by 8.8% and 2.9%, respectively. Products such as soybean oil, polyester yarn and thread, tea, particle board and cardamom recorded notable growth during the review period. However, exports of palm oil, zinc sheets, ginger, readymade garments and juice declined.

On the other hand, merchandise imports increased by 11.2%, reaching Rs 1,145.57 billion in the review period. Imports from India rose by 7.9%, while imports from China and other countries went up by 12.5% and 20.6%, respectively.

Significant increases were observed in imports of crude soybean oil, rice and paddy, transport equipment, vehicle parts, edible oil and sponge iron. In contrast, imports of petroleum products, crude palm oil, aircraft spare parts, writing and printing paper, and chemical fertiliser declined.

Thanks to the surge in imports, the total trade deficit widened by 6.2% to Rs 987.39 billion in the review period. The export-import ratio, however, improved to 13.8% from 9.8% in the same period of the previous fiscal year.

Final consumption goods dominated Nepal’s exports, accounting for 64% of total exports, while intermediate goods made up 35.2% and capital goods only 0.7%. On the imports side, intermediate goods represented 51.6% of total imports, while final consumption goods and capital goods accounted for 39.6% and 8.9% of total imports, respectively.