KATHMANDU, SEPTEMBER 23
In a sign of resumption of economic activities, the country's total trade surged 79.7 per cent in the first month of the current fiscal year (mid-July to mid-August) compared to the corresponding month of fiscal 2020-21.
The macroeconomic update report unveiled by the Nepal Rastra Bank today revealed that during the first month of 2021-22, merchandise exports increased 115.9 per cent to Rs 20.76 billion compared to an increase of 8.9 per cent in the same period of the previous year.
At the same time, merchandise imports increased 75.7 per cent to Rs 150.73 billion against a decrease of 19.6 per cent a year ago.
This mismatch resulted in the total trade deficit surging by 70.6 per cent to Rs 129.97 billion during the review period. Such deficit had decreased 22.2 per cent in the same period of the previous year. The export-import ratio increased to 13.8 per cent in the review period from 11.2 per cent in the same period of the previous year.
As per the broad economic categories (BEC), the intermediate and final consumption goods accounted for 31.8 per cent and 68.2 per cent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.02 per cent in the review period.
In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 32 per cent, 2.8 per cent and 65.3 per cent of total exports, respectively.
On the imports side, the share of intermediate goods remained 53.7 per cent, capital goods 11.5 per cent and final consumption goods remained 34.8 per cent in the review period. Such ratios were 50.6 percent, 13.8 per cent and 35.6 per cent respectively in the same period of the previous year.
Remittance inflows decreased 18.1 per cent to Rs 75.96 billion in the review period in contrast to an increase of 23 per cent in the same period of the previous year The current account remained at a deficit of Rs 47.90 billion in the review period compared to a surplus of Rs 24.89 billion in the same period of the previous year.
In the review period, capital transfer decreased 38 per cent to Rs 679.7 million and net foreign direct investment (FDI) decreased 65.5 per cent to Rs 480.6 million. In the same period of the previous year, capital transfer and net FDI amounted to Rs 1.10 billion and Rs 1.39 billion, respectively.
The country's balance of payments (BoP) registered a deficit of Rs 38.75 billion in the review period against a surplus of Rs 51.46 billion in the same period of the previous year.
A version of this article appears in the print on September 24 2021, of The Himalayan Times.