Economic slowdown impact: Nepal’s trade volume contracts by 4.15 percent

KATHMANDU: In the last month, Nepal incurred expenditures of Rs 104.75 billion on imported goods, while the earnings from exports amounted to a modest Rs 9.69 billion.

During mid-October to mid-November, a substantial portion of the country’s import spending went towards electric vehicles, among other items. Records from the Department of Customs (DoC) indicate that Nepal imported 652 units of electric four-wheelers valued at approximately Rs 1.83 billion during this period.

Export revenue from the cement industry contributed Rs 280 million last month, boosted by the government’s eight percent cash incentives on cement exports. This incentive has attracted several cement manufacturers to explore international markets.

The DoC’s four-month trade statistics reveal a decline in both import and export figures during the period, coinciding with a period of economic slowdown. The total trade volume contracted by 4.15 percent to Rs 563.06 billion.

Between mid-July and mid-November this year, the country imported goods totaling Rs 512.50 billion, a decrease from Rs 532.69 billion in the same period last year. Despite major festivals like Dashain and Tihar occurring within the timeframe, imports saw a decline of 3.79 percent.

Similarly, export earnings dropped by 7.68 percent to Rs 50.56 billion during the same period. The notable decrease in imports contributed to a 3.34 percent moderation in the trade deficit. Nepal experienced a negative trade balance of Rs 461.93 billion during this period.