Export earnings up in May

Apparel exports rose by 45.5 per cent in May 2007 largely driven by higher exports to the US and the EU. Strong growth was also witnessed in rubber based products, machinery and equipments, desiccated coconut and pepper.
As a result, the cumulative exports during January to May grew by 14.4 per cent from US$2,530 million in 2006 to US$2,894 million in 2007.

Export earnings in May recorded the highest monthly value in 2007, the Central Bank said.

Exports grew by an impressive 25.8 per cent to US$641 million in May 2007 as against US$509 million in May 2006. Persistently strong demand for apparel provided a basis for the strong trade performance in recent months, the bank said.

Apparel exports rose by 45.5 per cent in May 2007 largely driven by higher exports to the US and the EU. Strong growth was also witnessed in rubber based products, machinery and equipments, desiccated coconut and pepper.

As a result, the cumulative exports during January to May grew by 14.4 per cent from US$2,530 million in 2006 to US$2,894 million in 2007.

Imports grew by 8.1 per cent from US$938 million in May 2006 to US$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, textiles imports recorded the highest monthly value indicating continuous growth momentum in apparel exports in the future. Petroleum and fertiliser 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.

The bank said higher growth of exports over the growth of imports helped to improve the trade balance in this month. The trade deficit reached US$373 million in May 2007 compared to a deficit of US $429 million in May 2006. The resulting overall trade deficit in the first five months of 2007 narrowed to US$1,424 million as against US$1,485 million in 2006. Private remittances grew by 17.1 per cent to US$1,086 million during the first five months of 2007, particularly containing the current account deficit. The overall balance of payments registered a surplus of US$250 million and the gross official reserves stood at US$2,776 million (3.1 months of imports) by end May 2007.