Both Imports and Exports Have Decreased for the 8-Months of FY 79/80; What Is The Country's Biggest Imports/Exports This Month?
Nepal's foreign trade statistics for the first eight months of the fiscal year 2079/80 have been unveiled. Nepal’s trade deficit decreased by 17.86 percent to Rs. 9.53 Kharba as against Rs. 11.60 Kharba in the previous year, the government data showed on Wednesday.
The trade deficit is the amount by which the cost of a country's imports exceeds the value of its exports.
The trade deficit is one of the major causes that leads the national economy to a downturn side. Nepal has been suffering an imbalance figure in import and export factors.
Top ten imported goods by Nepal during the first eight-month of the Fiscal Year
Imports till Falgun month of FY 2079-2080, on the other hand, saw a decline of 19.13 percent, amounting to RS. 10.58 kharba. However, In the corresponding period of the previous year, Nepal had imported goods worth Rs. 13.08 Kharba.
During eight months, Crude soya bean, palm oil, fuels, LPG and Gold remained the top imported items.
It is worth noting that raw materials and intermediates account for a considerable proportion of Nepal’s exports, while finished products have an overwhelming presence in Nepal’s imports basket.
Top ten exported goods by Nepal during the first eight-month of the Fiscal Year.
Talking about the country's exports, they crossed Rs. 1.04 Kharba in eight month by sectors such as soya bean oils, Alaichi, Black tea, and carpets and related floor covering accumulating the highest exports.
Previously, Nepal had managed to export goods worth Rs. 1.47 Kharba. Exports have decreased by 29.07 percent in the first eight month of the current fiscal year as compared to last year.
The government data shows that the import has decreased which is a good sign as a rising level of imports and a growing trade deficit can have a negative effect on a country's exchange rate.
A country's importing and exporting activity can influence its GDP, its exchange rate, and its level of inflation and interest rates. Hence, the imports declining is a good sign for the trade balance but for export to be declining is not good for the economic development of a country.
