Earnings from exports in November 2021 recorded the highest monthly export value in history, while marking the sixth consecutive month of above US $ 1.0 billion in exports.
Import expenditure also increased at a higher rate in November 2021.
Reflecting the favourable impact of increased exports, the merchandise trade deficit narrowed to US $ 553 million in November 2021 compared to US $ 600 million in November 2020.
Tourist arrivals continued to gather momentum with a notable increase over the previous month, showing strong signs of revival. A further moderation of workers’ remittances was observed in November 2021. The weighted average spot exchange rate in the interbank market continued to hover around Rs. 202 per US dollar during the month.
The deficit in the trade account narrowed to US $ 553 million in November 2021, compared to the deficit of US $ 600 million recorded in November 2020. In the meantime, the cumulative deficit in the trade account from January to November 2021 widened to US $ 7,051 million from US $ 5,446 million in the corresponding period of 2020.
Terms of Trade: Terms of trade, i.e., the ratio of the price of exports to the price of imports deteriorated by 8.1 percent in November 2021, compared to November 2020, as the increase in import prices surpassed the increase in export prices. Overall exports: Earnings from exports in November 2021 grew by 54.6 percent over November 2020 to reach US $ 1,211 million, and surpassed the previous highest value recorded in October 2021 (US $ 1,200 million). Increases in earnings were observed across all main categories, while industrial exports mainly contributed to the expansion. Cumulative export earnings, which increased by 24.9 percent during January-November 2021 over the corresponding period of the last year, amounted to US $ 11,345 million. Industrial exports: Earnings from the export of industrial goods increased by 56.6 percent in November 2021, compared to November 2020.
This increase was due to a broad-based increase in earnings from most of the industrial products led by garments, petroleum products, rubber products and animal fodder. However, a decline in earnings was reported in the category of plastics and articles (mainly plastic clothing articles).
Export of garments to all major markets improved. Earnings from the export of petroleum products increased with the increase in prices of bunker and aviation fuel and the increase in volumes of bunker fuel exports. Tyres and gloves led to the increase in export earnings generated by rubber products. Earnings from the export of animal fodder increased mainly due to wheat residues.