KATHMANDU, OCTOBER 21
While the adverse impact of coronavirus has been witnessed on various sectors of the economy, it was more pronounced on external trade and credit expansion of banks and financial institutions (BFIs) in the first two months (mid-July to mid-September) of the current fiscal year.
The macroeconomic update report of the Nepal Rastra Bank (NRB) unveiled today shows merchandise exports increased 10.5 per cent to Rs 20.44 billion in the first two months of this fiscal compared to an increase of 25.9 per cent in the same period of the previous year. Merchandise imports decreased 22.1 per cent to Rs 178.85 billion compared to a decrease of 1.2 per cent a year ago.
Consequently, the total trade deficit narrowed down 24.9 per cent to Rs 158.41 billion in two months of 2020-21. Such deficit had contracted 3.1 per cent in the corresponding period of the previous year. The export-import ratio increased to 11.4 per cent in the review period from 8.1 per cent in the corresponding period of the previous year.
The year-on-year unit value export price index, based on customs data, increased 0.7 per cent and the import price index decreased four per cent in the second month of 2020-21. The terms of trade (ToT) index increas