The overall Balance of Payment (BoP) deficit has come down to Rs 3.35 billion during the five months of the current fiscal year 2010-11 compared to a deficit of Rs 14.55 billion in the same period last year, according to the central bank.
"The current account also registered a deficit of Rs 4.61 billion compared to a deficit of Rs 20.63 billion in the same period last year," the Current Macroeconomic Situation based on the five months' data of the fiscal year 2010-11, said, contributing the current account deficit narrowing to decline in trade deficit and an improvement in the growth rate of transfer income, particularly grants and remittances.
The Freight on Board (FoB)-based merchandise trade deficit dropped marginally by 1.4 per cent to Rs 122.66 billion during the five months of the current fiscal year as against 52.8 per cent in the same period last year.
The net service account deficit hs also declined significantly by 24.8 per cent to Rs 4.75 billion compared to a decline by only 3.4 per cent to Rs 6.31 billion in the same period last year.
The export import gap has not seen any sign of bridging. "Merchandise exports increased by 8.5 per cent to Rs 27.25 billion in the first five months of the current fiscal year compared to a decline by 17.8 per cent to Rs 25.12 billion in the same period last year, whereas imports grew marginally by 0.6 per cent to Rs 154.27 billion against a growth of 32.2 per cent to Rs 153.39 billion in the same period last year," the central bank added.
Exports to India increased by 11.7 per cent -- mainly due to increase in the exports of thread, jute goods, wire, cardamom, plastic utensil and MS pipe -- during the five months of 2010-11 in contrast to a drop of 12.3 per cent in the same period last year. Likewise, exports to other countries increased by 3.2 per cent -- due to the rise in the export of pulses, woolen carpet, tanned skin, pashmina, readymade leather and tea -- against a plunge of 25.5 per cent in the same period last year.
Total trade deficit during the five months of 2010-11 declined marginally by one per cent to Rs 127.02 billion against a rise of 50.1 per cent in the same period last year. Trade deficit with India rose by 30.7 per cent during the period compared to a growth of 51.2 per cent in the same period last year. On the contrary, trade deficit with other countries declined by 35.2 per cent compared to a growth of 48.9 per cent in the same period a year ago. The improvement in exports coupled with deceleration in import growth contributed to an increase in the ratio of export to import to 17.7 per cent from the ratio of 16.4 per cent a year ago.
However, the net transfer account registered a growth of 13.1 per cent to Rs 120.08 billion compared to a year ago. "Under the transfers, grants increased by 24 per cent to Rs 10.67 billion, while pension receipts rose by 11.5 per cent to Rs 13.61 billion and remittances increased by 11.3 per cent to Rs 96.59 billion," the central bank report said.
Likewise, under the financial account, foreign direct investment (FDI) of Rs 3.58 billion was recorded.
"The current account also registered a deficit of Rs 4.61 billion compared to a deficit of Rs 20.63 billion in the same period last year," the Current Macroeconomic Situation based on the five months' data of the fiscal year 2010-11, said, contributing the current account deficit narrowing to decline in trade deficit and an improvement in the growth rate of transfer income, particularly grants and remittances.
The Freight on Board (FoB)-based merchandise trade deficit dropped marginally by 1.4 per cent to Rs 122.66 billion during the five months of the current fiscal year as against 52.8 per cent in the same period last year.
The net service account deficit hs also declined significantly by 24.8 per cent to Rs 4.75 billion compared to a decline by only 3.4 per cent to Rs 6.31 billion in the same period last year.
The export import gap has not seen any sign of bridging. "Merchandise exports increased by 8.5 per cent to Rs 27.25 billion in the first five months of the current fiscal year compared to a decline by 17.8 per cent to Rs 25.12 billion in the same period last year, whereas imports grew marginally by 0.6 per cent to Rs 154.27 billion against a growth of 32.2 per cent to Rs 153.39 billion in the same period last year," the central bank added.
Exports to India increased by 11.7 per cent -- mainly due to increase in the exports of thread, jute goods, wire, cardamom, plastic utensil and MS pipe -- during the five months of 2010-11 in contrast to a drop of 12.3 per cent in the same period last year. Likewise, exports to other countries increased by 3.2 per cent -- due to the rise in the export of pulses, woolen carpet, tanned skin, pashmina, readymade leather and tea -- against a plunge of 25.5 per cent in the same period last year.
Total trade deficit during the five months of 2010-11 declined marginally by one per cent to Rs 127.02 billion against a rise of 50.1 per cent in the same period last year. Trade deficit with India rose by 30.7 per cent during the period compared to a growth of 51.2 per cent in the same period last year. On the contrary, trade deficit with other countries declined by 35.2 per cent compared to a growth of 48.9 per cent in the same period a year ago. The improvement in exports coupled with deceleration in import growth contributed to an increase in the ratio of export to import to 17.7 per cent from the ratio of 16.4 per cent a year ago.
However, the net transfer account registered a growth of 13.1 per cent to Rs 120.08 billion compared to a year ago. "Under the transfers, grants increased by 24 per cent to Rs 10.67 billion, while pension receipts rose by 11.5 per cent to Rs 13.61 billion and remittances increased by 11.3 per cent to Rs 96.59 billion," the central bank report said.
Likewise, under the financial account, foreign direct investment (FDI) of Rs 3.58 billion was recorded.
Inflation moderates
KATHMANDU: The y-o-y inflation as measured by the consumer price index moderated to 9.6 per cent in mid-December from 10.2 per cent in the same period last fiscal year. Region-wise, the price index increased highest in Kathmandu Valley by 14 per cent followed by 9.3 per cent in Hills and 6.6 per cent in Terai against 9.2 per cent, 10.9 per cent and 10.6 per cent in the same period last year.
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