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| Sunday, 1 June 2003 |
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Progressive recovery in exports Export earnings increased by US$ 37 million in March over February, showing a progressive increase in monthly export earnings recorded since January. Compared with a decrease of 25 per cent in March, 2002 the export earnings in US dollar terms grew by 15 per cent in March 2003. Meanwhile, the expenditure on imports measured in US dollar terms, grew by a lower rate of four per cent in March than the higher rate of increase in the first two months of 2003. This was mainly due to low imports of petroleum products and rice during March. As a result, the monthly trade deficit narrowed down to US$ 73 million in March, 2003, compared to a deficit of US$ 110 million in March 2002 and US$ 122 million in February 2003. The cumulative export earnings during the first quarter of 2003 increased by 10 per cent, in contrast to a drop of 15 per cent in the same period of 2002. Similarly, cumulative imports increased by 13 per cent as against a decrease of 16 per cent in 2002. Consequently, the trade deficit in the first quarter of 2003 increased to US$ 344 million, compared with a deficit of US$ 277 million recorded during the first quarter of 2002. Exports Export earnings in March, 2003 amounted to US$ 423 million, compared with US$ 366 million in March, 2002. The cumulative export earnings during the fist quarter of the year were US$ 1,190 million, compared with earnings amounting to US$ 1,080 million recorded during the corresponding period in 2002. Earnings from textile and garment exports increased by 16 per cent to US$ 210 million in March 2003, continuing the increasing trend recorded by this sector since October, 2002. Other industrial exports that supported the export growth were machinery, mechanical and electrical equipment (23 per cent), rubber-based products (33 per cent), diamonds (19 per cent), crustaceans, molluses and other fish products (97 per cent), footwear 30 per cent), leather (76 per cent), walltiles (21 per cent) and plastics per cent). However, decreases were recorded in earnings form travel goods (25 per cent). However, decreases were recorded in earnings from travel goods (-57 per cent), petroleum (-26 per cent), chemicals (-8 per cent) and tableware (-15 per cent) over March 2002. In contrast to the better performance of industrial exports, earnings from agricultural products declined by 10 per cent due to decreases in the exports of tea and cloves. Earnings from tea, amounting to US$ 56 million, recorded a decline of 10 per cent in March due to a lower volume of exports. The volume declined by 2.6 million kg. due to the impact of the Iraq war. Reflecting the impact of war-related uncertainties, the demand for low grown tea form Middle East countries was adversely affected during the first quarter of 2003. During the first quarter of 2003, tea production declined by 0.6 million kg. Imports The expenditure on imports amounting to US$ 495 million, increased by four per cent in March, 2003, compared with imports amounting to US$ 477 million in March 2002. The expenditure on imports during the first quarter of 2003 was US$ 1.534 million, an increase of 13 per cent over the imports in the 2002 first quarter. Imports of consumer goods increased by four per cent in March, 2003. Within this category, food imports declined by 14 per cent due to lower imports of wheat, sugar, rice and some fish products. Rice imports were low, reflecting the expectation of a large harvest in 2002/2003 Maha season. Imports of non-food consumer goods increased by 27 per cent reflecting increases mainly in motorcars and cycles, radio receivers and television sets, and rubber tyres and tubes. Intermediate goods imports increased by 10 per cent due to higher imports of textiles, refined petroleum products, diamonds and other intermediate products. Imports of investment goods increased marginally in March 2003. This was the combined effect of significantly high imports of building materials and transport equipment, offset by the declines in machinery, equipment and other investment goods. |
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