Exports dip by $ 100 m in Sept. over August record

Thursday, 2 December 2010 02:35 - - {{hitsCtrl.values.hits}}

The country’s exports in September at $ 663 million though up 16.7% over the corresponding month of last year, in comparison to 2010 highest performance achieved in August was lower by $ 100 million.The Central Bank said yesterday exports in September was up year on year due to increased earnings from agricultural and industrial exports.

Cumulative earnings from exports in the first nine months were up 11.4% to $ 5.7 billion. In August exports amounted to $ 760 million.

Expenditure on imports increased by 35.9% to $ 1.092 billion in September 2010, reflecting increases in all major categories of imports. The first nine months’ import bill was up 36.5% to $ 9.7 billion. This resulted in the trade deficit expanding by 100.3% to $ 4.039 b in the first nine months of 2010. Central Bank said the largest contribution to the increase in export earnings in September came from the industrial exports, mainly due to higher exports of garments and textiles, rubber products and food, beverages and tobacco.

Earnings from exports of textiles and garments recorded higher earnings despite the withdrawal of GSP+ concession with effect from 15 August, 2010.

While earnings from garment exports to the EU increased by 1.5%, garment exports to the USA grew by 13.4%. Earnings from agricultural exports also increased recording a healthy growth in all key sub-categories due to increases in both, volumes and prices. The average export price of tea continued to remain high at $4.31 per kg, while rubber prices rose by 62.9% to $3.08 per kg. Earnings from minor agricultural exports grew by 48.7% mainly due to the significant increases recorded in the export volumes of sesame seeds, pepper, cinnamon, arecanuts and fruits and the higher prices fetched by essential oils, vegetables, unmanufactured tobacco, and cinnamon.

All major categories of imports increased in September 2010. Expenditure on intermediate goods imports increased, led by petroleum imports. Expenditure on imports of consumer goods increased significantly during the month of September 2010, mainly due to higher imports of non-food consumer goods, of which nearly 54.0% comprised of motor vehicles. Food imports also increased due to higher expenditure incurred on import of sugar and milk products. Expenditure on sugar imports increased by 72.2% to $39.0 million, mainly due to a surge in sugar prices in the international market. Expenditure on all investment goods also increased significantly in September 2010.

Remittances up 13.4% to $ 2.8 b

Central Bank said yesterday worker remittances in the first nine months of 2010 rose by 13.4% to $ 2.8 billion over that of the corresponding period of 2009.

The gross official reserves continued to remain significantly above the targeted level and stood at $6.7 billion by end October 2010 without Asian Clearing Union (ACU) funds.

“Based on the previous 12 months, average expenditure on imports of $1,070 million per month, the gross official reserves, without ACU funds, were equivalent to 6.3 months of imports,” the Bank added.

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