Trade deficit narrowed by 3.1 per cent to Rs 211 billion in the two months of the current fiscal year 2019-20.
While merchandise exports increased by 25.9 per cent to Rs 18.5 billion in the two months of this fiscal compared to an increase of eight per cent in the same period of previous fiscal year, merchandise imports decreased by 1.2 per cent to Rs 229.50 billion, according to the Current Macroeconomic and Financial Situation of Nepal – based on two months’ data of fiscal year 2019-20 – narrowing the trade deficit gap, though in per cent only.
As the government tightened imports of luxury goods, imports of vehicles and spare parts fell by 9.3 per cent to Rs 16.30 billion, the data revealed, adding that oil imports also declined by 8 per cent to Rs 28.46 billion. The export has increased as the country witnessed an export of palm oil, which – according to the economists – is not sustainable.
Nepal’s imports from China, however, went up by 39.2 per cent due to an increased inflow of clothes, fruits and electronic goods for the festival season. Likewise, shipments to India jumped by 46 per cent while export earnings from India dropped by 17.4 per cent in the first two months of the current fiscal year. “Export earnings from third countries increased by less than 1 per cent.”
Likewise, earnings from the export of cardamom, cinnamon, handicrafts and thread to India almost doubled, apart from exports of Nepali lokta paper and its products and other handicraft items which also increased by a notable amount to third countries.
Similarly, the balance of payments (BoP) remained at a surplus of Rs 8.83 billion compared to a deficit of Rs 25.45 billion in the first two months of the previous fiscal year.
Based on the imports of two months of current fiscal year, the foreign exchange reserves of the banking sector is sufficient to cover prospective merchandise imports of 9.6 months, and merchandise and services imports of 8.4 months, according to the report.
However, year-on-year consumer price inflation stood at 6.16 per cent in mid-September against 3.86 per cent a year ago due to increasing price of food. “Food and beverage inflation stood at 6.51 per cent, whereas non-food and service inflation stood at 5.89 per cent in mid-September,” the report revealed.
The government has targeted to contain the inflation under 6 per cent in the current fiscal year, but the increasing price hike has challenged the government target.
While merchandise exports increased by 25.9 per cent to Rs 18.5 billion in the two months of this fiscal compared to an increase of eight per cent in the same period of previous fiscal year, merchandise imports decreased by 1.2 per cent to Rs 229.50 billion, according to the Current Macroeconomic and Financial Situation of Nepal – based on two months’ data of fiscal year 2019-20 – narrowing the trade deficit gap, though in per cent only.
As the government tightened imports of luxury goods, imports of vehicles and spare parts fell by 9.3 per cent to Rs 16.30 billion, the data revealed, adding that oil imports also declined by 8 per cent to Rs 28.46 billion. The export has increased as the country witnessed an export of palm oil, which – according to the economists – is not sustainable.
Nepal’s imports from China, however, went up by 39.2 per cent due to an increased inflow of clothes, fruits and electronic goods for the festival season. Likewise, shipments to India jumped by 46 per cent while export earnings from India dropped by 17.4 per cent in the first two months of the current fiscal year. “Export earnings from third countries increased by less than 1 per cent.”
Likewise, earnings from the export of cardamom, cinnamon, handicrafts and thread to India almost doubled, apart from exports of Nepali lokta paper and its products and other handicraft items which also increased by a notable amount to third countries.
Similarly, the balance of payments (BoP) remained at a surplus of Rs 8.83 billion compared to a deficit of Rs 25.45 billion in the first two months of the previous fiscal year.
Based on the imports of two months of current fiscal year, the foreign exchange reserves of the banking sector is sufficient to cover prospective merchandise imports of 9.6 months, and merchandise and services imports of 8.4 months, according to the report.
However, year-on-year consumer price inflation stood at 6.16 per cent in mid-September against 3.86 per cent a year ago due to increasing price of food. “Food and beverage inflation stood at 6.51 per cent, whereas non-food and service inflation stood at 5.89 per cent in mid-September,” the report revealed.
The government has targeted to contain the inflation under 6 per cent in the current fiscal year, but the increasing price hike has challenged the government target.
No comments:
Post a Comment