Nepal’s Trade Deficit Continues to Widen

Nepal’s total trade deficit in fiscal year 2014-15 surpassed the total annual budget presented for the same fiscal year, reports Republica.

The trade deficit rose by 10.8 percent to a whopping Rs 689.36 billion in the fiscal year 2014-15 compared to total fiscal budget of Rs 618 billion, according to the central bank’s report titled Current Macroeconomic Situation.

“The trade deficit increased in 2014/15 due to the increase in imports but decrease in exports,” the report states. Export to India and China dropped by 6.3 percent and 21.5 percent, respectively. This decrease is mainly attributed to the decrease in the exports of wheat flour, handicraft goods, agarbatti, pashmina, among others.

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Foreign Trade Balance of Nepal FY 2004-05 to 2013-14 (Source: Trade and Export Promotion Centre)

Posted by @siromanid

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