Nepal's Trade Deficit Narrows as Imports Decline by 2.66% to Rs. 10.3 Kharba; Exports Drop 3.99% Till Falgun

In the initial eight months of the fiscal year 2080/81, Nepal's trade report reveals concerning trends in the nation's economic landscape. The trade deficit, marking the variance between imports and exports, has fallen by approximately 2.52 percent. This concerning uptick signifies a widening gap between the cost of imports and the value of exports, posing challenges to the country's economic stability.

Import Trends:

During the first eight months of the fiscal year, imports exhibited a notable downturn of about 2.66 percent, reaching a total of around Rs. 10.3 Kharba. In the corresponding period of the prior year, Nepal's imports amounted to goods worth Rs. 10.58 Kharba.

Among the top imported goods, significant items included mineral fuels, iron/steel, electrical machinery, mechanical appliances, and vehicles. The escalation in these imports underscores a shift in consumer demand and industrial requirements within the country.

Export Trends:

Conversely, the country's exports stood at Rs. 1 Kharba in eight months, primarily driven by sectors such as coffee, tea & spices, iron/steel, and man-made staple fibers, constituting the highest export volumes.

However, exports have experienced a decline of about 3.99 percent compared to the previous year when Nepal recorded exports worth Rs. 1.04 Kharba. This decrease in exports presents a significant challenge to economic growth and stability, affecting critical indicators such as GDP, exchange rates, inflation, and interest rates.