Trade deficit down by 2.6% to Rs 693.20 billion

KATHMANDU: Nepal’s trade deficit fell by 2.6% and reached Rs 693.20 billion over the first six months of fiscal year 2023/24.

According to the Current Macroeconomic Situation Report for the First Half of 2023/24 unveiled by the Nepal Rastra Bank (NRB) on Tuesday, such deficit had declined by 19.2% in the previous fiscal year. Likewise, the export-import ratio decreased to 9.8%, from 10.2% in the corresponding period of the previous year.

Nepal’s merchandise exports and imports fell by 7.2% and 3.1%, respectively, during the period. Nepal exported goods worth Rs 74.97 billion during the review period. Although exports have declined, it is a significant improvement compared to a decrease of 32% in the same period of the previous fiscal year. While exports to India dropped by 12.8%, exports to China and other countries surged by 370.9% and 1.3%, respectively. Exports of zinc sheet, particle board, juice, and ready-made garments increased on the day, while palm oil, soybean oil, tea, woolen carpet, and rosin exports fell.

Merchandise imports also saw a significant improvement compared to a drop of 20.7% in the corresponding period of the previous fiscal year. During the period, Nepal exported goods worth Rs 768.17 billion. Imports from India and other countries decreased by 2.4% and 25.7 percent, respectively, while imports from China surged 34%. Noteworthy increases in imports were observed in items such as ready-made garments, electrical equipment, textiles, and transport equipment, while imports of gold, crude soybean oil, and petroleum products declined.

Intermediate and final consumption goods accounted for 55.9% and 43.9%, respectively, of total exports in the review period. On the import side, intermediate goods comprised 49.2%, capital goods 8.7%, and final consumption goods 42.1% of total imports.