Trade deficit up by 28 pc in six months

The total trade deficit widened further by 28.4 percent to Rs. 232.1 billion during the first six months of the current fiscal year 2012/13 from 17.9 percent during the same period of the previous fiscal year, according to the current macroeconomic situation of Nepal revealed by Nepal Rastra Bank.

Due to steep increase in imports, the ratio of export to import declined to 14.5 percent in the review period from 16.6 percent a year ago, said the central bank's report.

The imports of merchandise surged by 25.2 percent to Rs. 271.35 billion during the review period such imports had risen by 16.8 percent to Rs. 216.68 billion during the corresponding period of the previous fiscal year.

On a monthly basis, merchandise imports declined by 1.3 percent during December/January of the current fiscal year compared to that of the previous month.

Similarly, the exports of merchandise went up by 9.3 percent to Rs. 39.25 billion during the review period while such exports had increased by 11.2 percent to Rs. 35.92 billion during the same period of the previous fiscal year.

On a monthly basis, merchandise exports decreased by 0.7 percent in December/January of the current fiscal year compared to that of the previous month.

Likewise, the trade deficit with India expanded by 30.8 percent during the review period from 9.4 percent in the same period of the previous year while deficit with other countries increased by 24.1 percent compared to an increase of 36.7 percent during the same period of the previous fiscal year. Nepalnews.com