By TRN Online, Kathmandu, Dec. 23: Trade deficit widened by 54 per cent on the year on year (YoY) basis in the first five months of the current fiscal year (FY) in comparison to the previous review period.
The Department of Customs recorded Rs. 735.4 billion trade deficit during five months of the current FY up from Rs. 475.4 billion of the previous FY.
The trade deficit is nudged due to hefty imports. The imports in the five months sprang up by 59.55 per cent to Rs. 838.4 billion up from Rs. 525.4 billion in the review period of the current FY.
Nonetheless, rise in the export also remained outstanding. The export spurred up by 105.6 per cent to Rs. 102.9 billion in the current FY up from Rs. 50.05 billion of the previous review period. However, a deficit in the balance of trade stood still as the size of imports outweighed export in the current FY.
Meanwhile, the proportion of export in the aggregate foreign trade went up on a YoY basis. The percentage of export to total foreign trade improved to 10.93 per cent in the current FY from 8.70 recorded in the previous review period. Meanwhile, the percentage of import to total foreign trade slid to 89.07 percent from 91.30 per cent recorded in the review period of the previous FY.
The data indicated significant growth in the aggregate foreign trade as the international supply chain opened up despite the COVID-19 pandemic. It is expanded by 63.5 per cent to Rs. 941.3 billion up from Rs. 575.5 billion recorded in the review period of the previous FY.