Trade deficit contracts - CB

The trade deficit in the first four months this year contracted by 12.1 percent as growth in export earnings of 16.9 percent outpaced the 2.6 percent increase in import expenditure, a Central Bank (CB) release stated.

The release said that the increase in exports by 9.4 percent to US$ 762 million and the decline in import expenditure by 5.3 percent to US$ 1.4 billion in April this year led to the narrowing of the trade deficit by 17.7 percent to US$ 682 million.

Industrial exports which increased by eight percent year-on-year in April to US$ 559 million helped boost export earnings. Industrial exports were led by growth in textiles and garments which increased 22.5 percent contributing 94 percent to the increase in exports, the release stated.

A notable increase in exports of garments to non traditional markets such as China, Hong Kong, Japan and Russia by 50.5 percent during this period reflected a further diversification of export markets.Industrial exports accounted for over 73 percent of total exports.

During the month, earnings from garment exports to the EU and USA increased 22.3 percent and 21.2 percent.

Earnings from the export of machinery, mechanical appliances and leather products contributed to the growth in exports of industrial products.

Exports of petroleum products, gems, diamonds and jewellery, transport equipment declined in April.

A healthy performance mainly in tea and coconut product exports contributed to the growth in agricultural exports by 13.7 percent to US dollars 200 million. Export earnings from tea increased 9.8 percent to US dollars 117 million as a result of the increase in the price and volume of tea exported. Export earnings from minor agricultural products and vegetables also increased by 106.3 percent and 134.3 percent. - LF