Trade deficit widens fur­ther

People's Review - - FRONT PAGE - By Our Re­porter

The bal­ance of pay­ment (BoP) of the coun­try recorded a deficit of Rs. 3.29 bil­lion in the first month of the cur­rent fis­cal year, ac­cord­ing to a re­port of the Nepal Ras­tra Bank on the macroe­co­nomic sit­u­a­tion of the coun­try. The widen­ing trade deficit is blamed for this. In the first month of fis­cal year 2017/18, mer­chan­dise ex­ports de­creased by 3.9 per cent to Rs. 6.68 bil­lion while mer­chan­dise im­ports in­creased by 9.3 per cent to Rs. 77.28 bil­lion in the re­view pe­riod. The cur­rent ac­count deficit had amounted to Rs. 2.32 bil­lion in the same pe­riod of the pre­vi­ous year. How­ever, dur­ing the re­view pe­riod, work­ers' re­mit­tances in­creased by 7 per cent to Rs. 55.55 bil­lion in con­trast to a de­cline by 2.5 per cent in the same pe­riod the pre­vi­ous year. Con­se­quently, net trans­fer re­ceipt in­creased by 4.9 per cent to Rs. 62.70 bil­lion in the re­view pe­riod. Such re­ceipt had de­creased by 2.5 per cent in the same pe­riod of the pre­vi­ous year. In the re­view pe­riod, Nepal re­ceived cap­i­tal trans­fer amount­ing to Rs. 674.7 mil­lion and For­eign Di­rect In­vest­ment (FDI) in­flows of Rs. 4.61 bil­lion. In the same pe­riod of the pre­vi­ous year, cap­i­tal trans­fer and FDI in­flows were Rs. 606 mil­lion and Rs. 1.23 bil­lion re­spec­tively. The gross for­eign ex­change re­serves of the coun­try stood at Rs. 1078.84 bil­lion as of mid-Au­gust 2017, a decrease of 0.1 per cent from Rs. 1079.52 bil­lion as of mid-July 2017.

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