Nepal suffers trade deficit of Rs 1.43 billion a day
KATHMNADU, Nov 26:
Nepal´s total trade deficit increased by 11.3 percent to Rs 128.9 billion, or an average of Rs 1.43 billion per day, during the first quarter of 2013/14 compared to the figures of the same quarter of the last fiscal year.
The macro-economic report released by Nepal Rastra Bank (NRB) on Monday shows that country´s trade deficit with India - the largest trading partner -- surged by 14.2 percent during the review period. During the period, Nepal´s trade deficit with other countries increased by 5.9 percent.
Nepal´s export to India increased by 18 percent in the review period, while export to overseas country went up by a marginal 1.2 percent.
Exports of zinc sheet, cardamom, juice, herbal medicine, shoes and sandals, among others, to India increased during the review period. Similarly, exports of woolen carpet, readymade garments, pashmina products and medicinal herbs, among others, to third countries went up in the first quarter.
During the review period, total merchandise imports soared by 11.3 percent to Rs 151.86 billion. Import from India and overseas countries rose by 14.8 percent and 5.1 percent, respectively.
The central bank stated that imports from India increased primarily due to rise in imports of petroleum products, cold-rolled sheet in coil, thread, and vehicles & spare parts, among others. Imports from other countries went up on account of rise in imports of silver, crude soybean oil, chemical fertilizer, other stationeries, and transport equipments and parts among others.
According to the NRB report, Nepal reported Balance of Payment (BoP) surplus of Rs 52.74 in the first quarter. The country had recorded BoP surplus of Rs 2.05 billion during the same period last year.
Similarly, foreign exchange reserve also increased by 13.8 percent to Rs 606.82 billion in mid-October, up from Rs 533.3 billion recorded as at mid-July. Remittances from Nepali overseas workers surged by 38.2 percent to Rs 135.03 billion during the review quarter.
However, remittance inflows increased by 21.3 percent in dollar term to US$ 1.36 billion. Year-on-year inflation during the month ending mid-October has been reported at 8.4 percent. The government has set a target of containing inflation at 8 percent in the current fiscal year. During the same month in the last fiscal year, inflation was recorded at 10.5 percent.
During the month, price of food & beverage group, and non-food and services group increased by 10 percent and 6.9 percent respectively. Under the food and beverage group, price index of meat and fish sub-group jumped by the highest rate of 18.5 percent. The price indices of vegetables sub-group and restaurant and hotel sub-group went up by 14.0 percent and 11.9 percent, respectively.
Similarly prices of cereals, grains and their products sub-group and tobacco products sub-group increased by 11.5 percent and 9.9 percent respectively during the review period. In the group of non-food and services, the price index of clothing and footwear increased by 11.7 percent.
Source: Republica
