Nepal's Trade Deficit Narrows Slightly Amid Decline in Both Imports and Exports Till First 10 Months of FY 080/81

Mon, May 20, 2024 4:55 PM on Economy, National, Featured,

In the first ten months of the fiscal year 2080/81, Nepal's trade report indicates concerning trends in the nation's economic landscape. The trade deficit, the difference between imports and exports, has decreased by approximately 2.26 percent.

Import Trends:

During this period, imports exhibited a notable decline of about 2.39 percent, amounting to approximately Rs. 13.03 Kharba. In the corresponding period of the previous fiscal year, imports totaled Rs. 13.35 Kharba.

The most significant imported goods included mineral fuels, iron and steel, electrical machinery, mechanical appliances, and vehicles. This escalation in these imports underscores shifts in consumer demand and industrial requirements within the country.

Export Trends:

Conversely, the country's exports stood at Rs. 1.26 Kharba in ten 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 3.61 percent compared to the previous year when Nepal recorded exports worth Rs. 1.3 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.