Imports and Exports See Decline in First 10 Months of FY 2023/24

Nepal’s merchandise export fell by 3.6% to Rs 126.17 billion in the first 10 months of the fiscal year 2023/24, marking a smaller decline compared to the 24.5% decrease recorded in the same period of the previous fiscal year. The latest Current Macroeconomic and Financial Situation Report, released by the Nepal Rastra Bank (NRB) on Monday, highlights shifts in export and import patterns, with significant changes in trade dynamics with key partner countries.

Exports to India and other countries decreased by 5.6% and 1.4% respectively, while exports to China surged by an impressive 68.1%. Notable increases in exports were recorded in zinc sheets, particle boards, juice, readymade garments, and oil cakes. Conversely, exports of palm oil, soybean oil, woolen carpets, tea, and brans saw a decline.

Merchandise imports also experienced a downturn, decreasing by 2.4% to Rs 1,303.36 billion, a less sharp fall compared to the 16.8% drop in the previous year. Imports from India and other countries fell by 3.4% and 20.8% respectively, while imports from China rose by 34.4%. Significant growth was observed in the imports of transport equipment, vehicle parts, readymade garments, aircraft spare parts, and electrical equipment. However, imports of crude soybean oil, gold, hot rolled sheets in coil, crude palm oil, and rice/paddy decreased during the review period.

The total trade deficit narrowed by 2.3% to Rs 1,177.18 billion during this period, compared to a 15.9% decrease in the same period of the previous fiscal year. The export-import ratio saw a slight decrease to 9.7% from 9.8% in the prior year.

In terms of export composition, intermediate and final consumption goods made up 56.6% and 42.8% of total exports respectively, while capital goods constituted a negligible 0.6%. On the import side, intermediate goods accounted for 48.9%, capital goods 9.3%, and final consumption goods 41.8%.