• In March 2024, the merchandise trade deficit narrowed to $369 million, compared to $412 million in March 2023, primarily due to higher export growth than import growth.
• The cumulative deficit for January to March 2024 was higher than the same period in 2023, totaling $1,229 million compared to $896 million.
• Merchandise export earnings in March 2024 increased by 9.8% to $1,139 million compared to March 2023, driven by growth across all major export categories, especially industrial goods like petroleum products and textiles.
• On the import side, expenditure increased by 4.0% to $1,508 million in March 2024 compared to March 2023, with notable increases in intermediate goods, particularly fuel imports, and investment goods.

In March 2024, the merchandise trade account witnessed a narrowing deficit, decreasing to $369 million from $412 million in March 2023, primarily fueled by a more substantial increase in exports compared to imports. However, this improvement was overshadowed by a widening deficit from February 2024, which stood at $319 million. Meanwhile, the cumulative deficit for January to March 2024 amounted to $1,229 million, surpassing the deficit recorded during the same period in 2023, which was $896 million.

Earnings from merchandise exports in March 2024 amounted to $1,139 million, marking a 9.8% increase from March 2023's $1,037 million. Notably, all major export categories experienced growth, with industrial exports leading the surge, driven primarily by petroleum products due to increased volumes of bunkering and aviation fuel exports, alongside notable improvements in textiles and garments exports. Agricultural exports also saw a boost, led by tea and coconut-related products, despite a decline in spice exports. Conversely, mineral exports witnessed only a marginal increase. The rise in export earnings in March 2024 compared to February 2024 was predominantly attributed to heightened textiles and garments exports, reaching their highest earnings since December 2022. On the import side, expenditure increased by 4.0% to $1,508 million in March 2024 compared to March 2023, with intermediate goods, particularly fuel imports, experiencing the most significant increase. While expenditure on consumer goods imports rose due to increased spending on food and beverages, a decline was observed in non-food consumer goods, notably medical and pharmaceuticals. Meanwhile, investment goods imports surged, driven by higher imports of building materials and machinery. The increase in imports from February 2024 was primarily due to the normalization of fuel expenditure.

Merchandise trade deficit narrowed in March | The Morning