August 30, 2020 | Investopaper
In the fiscal year 2019/20, Nepal’s international trade has been lowest in the last nine years. According to the latest data released by the Nepal Rastra Bank, international trade has fallen below 35 percent of gross domestic product (GDP) for the first time since 2067/68, the year of the global recession.
Last year, total international trade fell to 34.4 percent of GDP. This is the third lowest point after 2050 BS. In the previous fiscal year, international trade had reached a record high of 43.8 percent. Trade has a large share in the import-oriented Nepali economy. Wholesale and retail trade has contributed about 12.5 percent to the GDP. Apart from that, the business sector has a huge role to play in generating revenue in the government coffers by creating huge employment.
Corona epidemic affected international trade for about five months of the last fiscal year. Experts say that the reduction in imports has been due to the fall in the price of petroleum products in the international market and the tightening of imports by the government. Likewise, the decline in consumption has also resulted in the decline in trade.