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NEPAL ECONOMIC FORUM
DOCKING NEPAL’S ECONOMIC ANALYSIS
TRADE AND DEBT AGRICULTURE TRADE AND DEBT
For the first nine months of the Fiscal Year (FY) 2020-21, trade deficit increased by 12.5%, indicating that trade activities had started picking up. However, with the spike in the Covid-19 cases and lockdown being imposed in a majority of the country, trade activities have come to a halt once again. The international borders have been closed, exposing entrepreneurs and exporters to tough times. Transportation charges have also increased, pushing up the rate of exports. In terms of destination, exports to India witnessed a growth of 23.5% and exports to other countries also grew by 14.5%. However, exports to China experienced a considerable decline of 27.3%. Similarly in the first nine months of the FY 2020/21, merchandise imports increased by
Foreign Trade Scenario: Table 1
reflects the trade scenario of the third quarter (Q3) of the FY 2020/21. In the review period, merchandise exports increased by 20.2% to NPR 94.77 billion (USD 787.12 million) as compared to a 12.9% increase in the same period of the previous year.
13.1% to NPR 1,111.40 billion (USD 9.23 billion) as against a decline of 7.5% a year ago. Destinationwise, imports from China and India increased by 7.7% and 20.3%, whereas imports from other countries fell by 2.3%.
Table 1: Foreign Trade Statistics of Q3 in the fiscal year 2020/21 (NPR in millions) 2018/19 Heading Annual
2019/20 Nine Months
Annual
2020/21P
Nine Months
Nine Months
Percent Change 2019/ 20
2020/ 21
Total Exports
97,109.5
69,822.3
97,709.1
78,818.7
94,767.1
12.9
20.2
To India
62,731.8
44,186.2
70,108.9
55,423.8
68,435.8
25.4
23.5
To China
2,109.8
1,523.3
1,191.2
1,095.7
796.4
-28.1
-27.3
32,267.9
24,112.7
26,409.0
22,299.2
25,534.9
-7.5
14.5
1,418,535.3
1,061,633.7
1,196,799.1
982,534.8
1,111,395.5
-7.5
13.1
From India
917,922.2
686,869.3
735,294.8
602,615.1
724,946.3
-12.3
20.3
From China
205,518.6
153,974.2
181,920.3
152,384.5
164,133.6
-1.0
7.7
From Other Countries
295,094.5
220,790.2
279,583.9
227,535.3
222,315.5
3.1
-2.3
Total Trade balance
-1,321,425.8
-991,811.4
-1,099,089.9
-903,716.2
-1,016,628.3
-8.9
12.5
To Other Countries Total Imports
