The Balance of payment (BoP) deficit has increased to Rs 4.36 billion in the first two months from the first month's Rs 312.8 million only, reveals the central bank's current macroeconomic situation based on the second month's data of the current fiscal year.
The overall BOP has recorded a deficit of Rs 4.36 billion in the first two months of 2010-11 compared to a deficit of Rs 1.44 billion in the same period last year, it said the current account registered a deficit of Rs 3.26 billion compared to a deficit of Rs 6.29 billion in the same period last fiscal.
The central bank attributed the deceleration in the growth rate of trade deficit and considerable growth transfer income to such a decline in the current account deficit.
The FOB-based merchandise trade deficit also grew by 7.7 per cent to Rs 49.24 billion against a grown in deficit by 34.1 percent in the same period last fiscal. The service income net has witnessed a drop of 48.9 per cent to Rs 2.46 billion compared to a decline by 29.8 per cent to Rs 16.84 billion in the same period last fiscal year.
The transfer account registered a growth of 13.4 per cent to Rs 48.11 billion. "Under the transfers subgroup, grants increased by 54 per cent to Rs 5.67 billion while pension receipts rose by 9.4 per cent to Rs 4.49 billion," the report added. "Likewise, remittances increased only by 9.7 per cent to Rs 38.4 billion compared to its growth of 19.7 per cent in the same period last fiscal year. However, on a monthly basis, the remittance inflows grew by 11.5 per cent in August-September compared to the same month of the last year.
Nepal's merchandise exports declined by 3.8 per cent to Rs 10.68 billionagainst a decline by 14.4 per cent to Rs 11.10 billion in the same period last year. On a monthly basis, exports declined by 7.2 per cent in August-September, compared to the value of the previous month.
Exports to India increased by 13.7 per cent in the two months in contrast to a drop of 13.1 per cent in the same period last year. Likewise, exports to other countries plummeted by 24.5 per cent compared to a drop of 16 per cent in the same period last year.
Similarly, the merchandise imports grew by 5.2 per cent to Rs 61.07 billionagainst the growth of 21.3 per cent to Rs 58.04 billion in the same period last year.
"Imports from India doubled as it grew by 36.1 per cent compared to a growth of 18.8 per cent in the same period last year. But imports from other countries declined by 31.3 per cent compared to a growth of 24.3 per cent in the same period last year," the central bank said. "Total trade deficit during the two months of current fiscal year expanded by 7.4 per cent to Rs 50.4 billion against an increase by 34.5 per cent to Rs 46.9 billion in the same period last year."
Trade deficit with India rose by 41.3 per cent compared to a growth of 30.1 per cent in the same period last year. On the contrary, trade deficit with other countries declined by 32.9 per cent compared to a growth of 40.3 per cent in the same period last year. "As a result of the slowdown in exports and accelerated import growth, the ratio of export to import dropped to 17.5 per cent from 19.1 per cent a year ago."
Meanwhile, government budget remained at a surplus of Rs 8.1 billion due to a high growth of revenue mobilisation and less government expenditure.
Similarly, the year on year (y-o-y) inflation stood at 8.6 per cent in mid September compared to 9.1 per cent in the same period last fiscal.
No comments:
Post a Comment