External Trade

Third quarter 2009

Highlights

1. Balance of Trade

Total exports for the first nine months of 2009 stood at Rs 45,187 million against imports of Rs 82,802 million resulting in a trade deficit of Rs 37,615 million, which is 22.9% lower than the figure of Rs 48,769 million for the corresponding period of 2008.

2. Exports

Total export proceeds for the first nine months of 2009 were valued at Rs 45,187 million, showing a decrease of 6.1% over the corresponding nine months of last year.

During the first nine months of 2009, almost 42.3% of exports consisted of “articles of apparel and clothing accessories” (Rs17,604 million), 16.5% of “fish and fish preparations” (Rs 6,860 million) and 11.8% of sugar (Rs 4,931 million).

The main export market remained the European continent with a share of 66.9%, while on a country-wise basis, UK was the main buyer, representing 26.8% of total exports. The other main markets were France (16.2%), USA (8.6%) and Madagascar (6.5%).

3. Imports

Total imports for the first nine months of 2009 reached Rs 82,802 million, a decrease of 14.5% compared to the first nine months of 2008.

During the first nine months of 2009, “Machinery and transport equipment”, “Food and live animals” and “Manufactured goods chiefly classified by materials” represented shares of 21.8% , 20.0% and 18.8% of total imports respectively.

Imports were mainly from Asia (49.7%) and Europe (27.7%). On a country-wise basis, India is our main source of imports (18.8%) followed by China (12.3%) and France (9.6%).

4. Forecast

Based on trends for previous years and actual data for 2009 till September, total exports for the year 2009 are expected to be of the order of Rs 63,000 million against imports of Rs 116,000 million. The trade deficit would therefore be around Rs 53,000 million.

December 2009

More: External Trade – 3rd Quarter 2009