Nepal’s trade dynamics in the initial nine months of fiscal year 2080/81 reveal alarming patterns, raising concerns about the nation’s economic outlook. The trade deficit, representing the variance between imports and exports, has expanded by approximately 2.75 percent during this period, indicating a growing disparity between import costs and export values, posing significant challenges to Nepal’s economic stability.
Imports
Imports in the first nine months of the fiscal year witnessed a noticeable decline of around 2.84 percent, totaling approximately Rs. 11.67 Kharba. In comparison, the corresponding period in the previous year saw imports amounting to goods worth Rs. 12.01 Kharba.
Key imported commodities included mineral fuels, iron/steel, electrical machinery, mechanical appliances, and vehicles. The surge in these imports reflects shifting consumer demands and evolving industrial needs within the country.
Exports
On the contrary, Nepal’s exports amounted to Rs. 1.13 Kharba during the nine-month period, primarily led by sectors like coffee, tea & spices, iron/steel, and man-made staple fibers, which constituted the bulk of export volumes.
However, exports have witnessed a decline of about 3.66 percent compared to the previous year’s exports valued at Rs. 1.18 Kharba. This decline poses a significant challenge to economic growth and stability, impacting vital indicators such as GDP, exchange rates, inflation, and interest rates.