Impressive growth in export earnings in May
GROWTH: Export earnings continued to grow in May 2007 reaching a US $
2.893.5 million recording the highest monthly value in 2007. This is an
impressive 25.8 per cent growth as against the previous year.
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RECORD EARNINGS:The apparel sector has contributed to the
overall growth. Picture by Sumanachandra Ariyawansa |
Total exports in the first five months in 2006 was US $ 2530.0
million while in the same corresponding period in 2007 it stood at
2,893.5 million US dollars.
This is a healthy 14.4 per cent growth. Persistently strong demand
for apparel has provided a basis for the strong trade performance in
recent months. Export of apparel rose by 45.5 per cent in May 2007
largely driven by higher exports to the US and the EU, the Central Banks
said.
Strong growth was also witnessed in rubber based products, machinery
and equipment, desiccated coconut and pepper. As a result, the
cumulative exports during January to May grew by 14.4 per cent from US
dollars 2,530 million in 2006 to US dollars 2,894 million in 2007.
Imports grew by 8.1 per cent from US dollars 938 million in May 2006
to US dollars 1,014 million in May 2007.
The growth was primarily driven by intermediate and investment goods.
Rapid growth in imports of textile materials in recent months reflected
in higher exports of apparel.
Continuing the trend, textile imports recorded the highest monthly
value indicating continuous growth momentum in apparel exports in the
future. Petroleum and fertilizer also increased within this sector.
Investment goods continued to grow at a higher rate in May 2007
reflecting continuation of high investments.
Consumer goods declined marginally mainly due to lower imports of
sugar and motor vehicles. Cumulative imports during the first five
months grew by 7.5 per cent from US dollars 4,015 million in 2006 to US
dollars 4,318 million in 2007.
Higher growth of exports over the growth of imports helped to improve
the trade balance in this month. The trade deficit reached US dollars
373 million in May 2007 compared to deficit of US dollars 429 million in
May 2006.
The resulting overall trade deficit in the first five months of 2007
narrowed down to US dollars 1,424 million as against US dollars 1,485
million in 2006.
Private remittances grew by 17.1 per cent to US dollars 1,086 million
during the first five months of 2007, particularly containing the
current account deficit.
Foreign remittance too was on the increase and it had shown a sharp
17.1 percent increase.
The total earnings in the first five months of last year was US $
million 927.3 in 2006 while in the first five months of this year it was
US $ 1,086.3 million, according to Central Bank figures.
The overall balance of payments registered a surplus of US dollars
250 million and the gross official reserves stood at US dollars 2,776
million (3.1 months of imports) by end May 2007. |
