Export decreased by almost 5 per cent

Kathmandu, Oct. 29: Goods export has increased by 3 per cent to Rs. 13.58 billion in the first two months of the current Fiscal year 2017/18, compared to a growth of 7.7 per cent in the same period of the last fiscal.

According to the Nepal Rastra Bank (NRB)’s report on Current Macroeconomic and Financial Situation of Nepal, based on the first two months of the fiscal year, the merchandise export growth was shrunk due to the decreasing export to India, the largest trade partner of the country.

“In the first two months, export to India decreased 3.3 per cent whereas export to China and other countries increased 44.6 per cent and 9.7 per cent respectively,” said the NRB.

Export of cattle feed, thread, readymade garments, oil cake, vegetable ghee among other increased while the export of juice, cardamom, woollen carpet, GI pipes, toothpaste and other products was decreased.

But, goods imports increased 11 per cent to Rs. 165.41 billion in the two months compared to a growth of 43.4 per cent last year.  

The export through Birgunj Customs, Dry Port Customs, Bhairahawa Customs, Krishnanagar Customs and Kailali Customs decreased whereas import was decreased through Bhairahawa, Tribhuvan International Airport and Kanchanpur Customs.

According to the central bank, consumer price inflation has risen to 3.4 per cent in mid-September 2017 from 2.3 per cent in mid-August 2017.

It said that the spike in prices of vegetables on accounts of floods and inundation in mid-August this year had pushed overall prices up.

Food inflation has eased to 1.8 per cent in mid-September this year from 7.7 per cent in the corresponding period of last year. A fall in prices of pulses and legumes by 23.7 per cent together with spices by 4.2 per cent has helped ease overall food inflation.

Price of vegetables increased by 8.9 per cent and alcoholic drinks 8.8 per cent during that period.

Non-food inflation decelerated to 4.7 per cent from 8.1 per cent last year.

Similarly, the workers remittances increased 0.7 per cent to Rs. 115.55 billion in the review period compared to 6.6 percent in the same period of the last year.

Consequently, net transfer receipt increased 0.4 per cent to Rs. 130.65 billion. Such receipt had increased 3.7 per cent in the same period of the last year. 

Likewise, the current account registered a deficit of Rs. 17.88 billion in the first two months of current FY.

Such deficit was Rs. 11.12 billion in the same period of the previous year.

Similarly, the overall BOP remained at deficit of Rs. 5.87 billion in the review period compared to a deficit of Rs. 3.50 billion in the same period of the previous year.

In the first two months, Nepal received capital transfer amounting to Rs. 1.84 billion and Foreign Direct Investment (FDI) inflow of Rs. 5.10 billion.

In the same period of the previous year, capital transfer and FDI inflow had amounted to Rs. 1.54 billion and Rs. 2.19 billion respectively.