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Exports
up 17%, Imports higher by 24% in May
The country’s external trade remain robust in May with
exports recording a 17% increase but higher import cost continue
to worsen the trade deficit, the first five months figure
of which has now topped US$ 2.5 billion.
The Central Bank said in May 2008, exports increased by 17.0
per cent, year-on-year, to US dollars 746 million. Industrial
exports largely contributed to this growth with export earnings
from food, beverages and tobacco; diamonds and jewellery;
garments and textiles; rubber products; machinery and equipment;
and petroleum products expanding. However, the major impetus
for export growth in recent months came from the agricultural
sector, reflecting the impact of the surge in global food
and energy prices. Agricultural exports continued to expand
in May 2008 along with significant increases in earnings from
tea and minor agricultural products. The continuous increase
in minor agricultural product exports backed by the higher
performance of particularly cinnamon, cloves, fruit and vegetables,
and betel leaves has been a noteworthy feature in relation
to the agricultural sector in recent months. Mineral exports
including gems, which have a share of only approximately 1
per cent in total exports, meanwhile, recorded a decline.
Cumulative exports during the period January - May 2008 recorded
a growth of 12.6 per cent, in comparison to the corresponding
period last year, and amounted to US dollars 3,234 million.
Expenditure on imports in May 2008 increased by 24.2 per cent,
on a year-on-year basis, and amounted to US dollars 1,258
million. Imports of petroleum continued to dominate the behaviour
of import expenditure, accounting for 58.3 per cent of the
increase in import expenditure in May 2008, while food imports
accounted for about 21.0 per cent of the year-on-year increase
in expenditure on imports, mainly as a result of increased
expenditure on wheat. Investment goods imports also increased
further and accounted for 5.5 per cent of the increase in
import expenditure in May 2008. Cumulative expenditure on
imports during the period January - May 2008 grew by 34.8
per cent when compared with the corresponding period last
year, and amounted to US dollars 5,813 million. Imports excluding
petroleum grew by 25.1 per cent to US dollars 4,360 million
for the first five-months of 2008.
The deficit in the trade balance in May 2008 was US dollars
512 million, compared to a deficit of US dollars 376 million
in May 2007. The cumulative deficit in the trade balance for
January-May 2008 was US dollars 2,579 million, compared to
a deficit of US dollars 1,439 million for the corresponding
period last year. The overall balance of payments recorded
a surplus of US dollars 292 million by end-May 2008, and the
gross official reserves amounted to US dollars 3,355 million
by end May 2008, which was sufficient to finance around 3.2
months of imports.
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