December and full year trade gaps widen as exports continue to slide

The trade deficit for last December widened 4.4 percent year-on-year (yoy) to US$ 827.3 million, widening the 2015 trade deficit 1.7 percent yoy US$ to 8.43 billion amid downturn in the global economy, Central Bank data showed.

December export values fell 18.7 percent Yoy to US$ 817.5 million, highlighting a 10 month streak of declining exports. Industrial exports fell 17 percent yoy to US$ 624.1 million. Textiles and garments which contributed 48 percent of the total exports fell 12.8 percent to US$ 393.4 million amid reduced demand in the main markets in the US and Europe, but demand marginally increased from non-

traditional markets such as China and Canada. Rubber exports fell 19.8 percent yoy to US$ 58.5 million due to falls in commodities, gems and jewellery exports fell 38.6 percent yoy to US$ 18.1 million due to decreased demand from China. Machinery and mechanical appliances exports declined 24.2 percent yoy to US$ 23.4 million. Petroleum products exports increased 24.5 percent yoy to US$ 30.3 million due to increased bunkering facilities. Agro exports fell 23.4 percent YOY to US$ 191.1 million as a result of falling commodity price.

Earnings from tea exports fell 24.7 percent yoy to US$ 105.2 million, coconut exports fell 10.6 percent yoy to US$23.7 million and spice exports fell 14 percent yoy to US$ 24.4 million. However, cinnamon exports increased 3.8 percent yoy to US$ 14.2 million. Sea food exports fell 31.2 percent yoy to US$ 15 million as a result of a European Union ban on fish exports. Minor agro product exports fell 31.8 percent yoy to US$ 14.4 million. Imports for December declined 8.5 percent yoy to US$ 1.65 billion. Intermediate good imports fell 8.7 percent yoy to US$ 855.4 million, contributed mainly by a 15.5 percent yoy decline in fuel imports to US$ 216.6 million.

Textile imports increased 6.9 percent yoy to US$ 214.4 million. Chemical product imports fell 14.5 percent yoy to US$ 72.4 million, while wheat and maize imports fell 26.8 percent yoy to US$ 35 million.

Consumer goods imports fell 9.1 percent yoy to US$ 383.8 million despite the festive season. Food and beverage imports fell 11.7 percent yoy to US$ 149.5 million. Vehicle imports fell 41.1 percent yoy to US$ 65.7 million amid restrictions, and medical and pharmaceutical imports fell 15.2 percent yoy to US$ 41.2 million. Investment goods imports fell 7.5 percent yoy to US$ 404.3 million.

The decline came due to transport equipment imports falling 49.8 percent yoy to US$ 50.9 million. Machinery and equipment imports increased 8.1 percent yoy to US$ 223.8 million, and building material imports increased just 0.9 percent yoy to US$ 128.5 million. For the year 2015, exports declined 5.6 percent yoy to US$ 10.50 billion. Industrial exports declined 3.5 percent yoy to US$ 7.98 billion through a fall in textiles and garments by 2.2 percent yoy to US$ 4.82 billion. Rubber exports declined 14.5 percent yoy to US$ 761.2 million.

Gems and Jewellery exports fell 15.7 percent YOY to US$ 331.7 million, while petroleum products exports increased 10.6 percent yoy to US$ 373.9 million. Agricultural exports fell 11.2 percent yoy to US$ 2.48 billion with tea exports falling 17.7 percent yoy to US$ 1.34 billion. Coconut exports fell 1.3 percent yoy to US$ 351.7 million, spices exports fell 42.7 percent yoy to US$ 377.4 million, and sea food exports declined 35.5 percent YOY to US$ 163.1 million. Imports for 2015 declined 2.5 percent yoy to US$ 18.93 billion. Intermediate goods imports fell 15.4 percent yoy to US$ 9.64 billion, with fuel imports falling 41.3 percent yoy to US$ 2.7 billion. Textile imports fell 1.3 percent yoy to US$ 2.3 billion and chemical imports increased 7.7 percent yoy to US$ 870.3 million.

Consumer goods imports increased 22.3 percent yoy to US$ 4.71 billion. Food and beverage imports declined 0.4 percent yoy to US$ 1.63 billion, while vehicle imports increased 51.6 percent yoy to US$ 1.36 billion through the interim budget proposals. Medical and pharmaceutical imports increased 20.8 percent yoy to US$ 459.8 million.