Trade Deficit At 10-Month High As Exports Decline For Second Month In A Row

Exports declined for the second straight month in November on continued muted demand in major overseas markets. Outbound shipments were down by 8.7% in November when compared to 5.1% in October.

A contraction in shipments at key sectors like petroleum, engineering, chemicals and gems and jewellery, also push export volumes in November.

In September, exports rose by 6% after declining for 6 straight months. In 2020, exports grew only in the month of February and September.

In value, exports in November stood at $23.52 billion when compared to $25.77 billion in the same month last year. Imports were down 13.32% to $33.39 billion in the month under review, causing a 10-month high trade deficit of $9.87 billion.

Imports declined for the ninth month in a row, slipping 13.3% to $33.39 billion, government data showed.

Trade deficit narrowed to $9.87 billion.

Although the trade deficit narrowed from $12.75 billion in November 2019, the deficit widened from $8.78 billion in October.

Within imports, non-oil non-gold imports came down by 1.67% at $24.10 billion in November.

Petroleum products recorded a decline of 59.73% in November and engineering goods fell by 8.12%. Even labour intensive items such as leather and its products shrank by 29.8, readymade garments by 2%.

On the other hand, pharmaceuticals exports rose 11.15%, gems and jewellery by 4.1% and electronics goods by 0.97%.