Tuesday, March 25, 2008

Trade deficit doubles to US$ 611mn

The Central Bank said that the trade deficit increased to US$ 611 million in January 2008 which is a year-on-year increase of 104.6 percent as a result of the significant increase in the expenditure on imports.

Total exports in January 2008 amounted to US dollars 565 million compared to US dollars 489.5 million in January 2007.

The bank said that total expenditure on imports amounted to US dollars 1,176 million in January 2008, compared to US dollars 788 million in January 2007.

Exports increased by 15.4 per cent, year-on-year, in January 2008 along with a 41 per cent growth in Agricultural exports while tea exports, which were adversely affected by reduced production owing to labour unrest in January 2007, made a significant contribution of 38 per cent to the growth in total exports in January 2008, as a result of both the volume of export and the export price of tea increasing further, on a year-on-year basis, the Central Bank said.

"Tea fetched a monthly average export price of US dollars 3.83 a kilogram in January 2008; the highest recorded at that time," the bank said.

" The export price of rubber also increased further in January 2008, resulting in a monthly average price of US dollars 2.70 a kilogram. The growth in the volume of rubber exports during this period could be partly attributed to this increase in the export price of rubber.

"Industrial exports accounted for about 28 per cent of the growth in total exports in January 2008, with exports of garments and textiles expanding further by around 4 per cent. Amongst other key categories of industrial exports, rubber products and diamonds and jewellery recorded significant growth, but exports of machinery and equipment and food, beverages and tobacco contracted. The Central Bank said that expenditure on imports increased by 49.2 per cent in January 2008.

"The rise in petroleum prices as reflected in the monthly average import price of petroleum, which rose to US dollars 92.7 a barrel in January 2008; the highest recorded up to then, impacted on import expenditure, the increase in expenditure on imports is partly a reflection of the fact that there were no imports of crude oil in January 2007.

"Non-oil imports increased at a relatively lower rate of 19.1 per cent in January 2008.

"With respect to consumer goods imports, which grew by 38 per cent, year-on-year, in January 2008, price increases were recorded in relation to several key categories of food items such as rice and wheat. A further significant increase in the volume of imports was recorded in respect of rice, year-on-year. Hence, the value of rice imports increased significantly in January 2008, driven by increases in both the volume and the import price.

" Expenditure on imports of sugar increased due to increased volumes of imports. Imports of other consumer goods such as medical and pharmaceutical products and motor cars and cycles also increased in January 2008, contributing to the increase in total expenditure on imports."

No comments: