Driven by increased exports and reduced imports, the country’s trade deficit significantly decreased in 2023. A trade deficit occurs when a country imports more than it exports. According to the National Statistics Bureau’s National Accounts Statistics, the trade deficit dropped by over Nu 16bn in 2023 compared to the previous year.
2023 was a good year for exports. The economy experienced a significant boost in the export of goods and services, with an overall increase of 30.68 per cent compared to the previous year.
In terms of value, the total export of goods and services was estimated to be Nu 70.6bn in 2023. According to the NSB report, the export volume accounted for 28.33 per cent of the GDP for the year.
The export of services recorded an impressive rebound with a growth of 873 per cent in 2023 after three consecutive years of contraction.
In terms of imports, the total value of imports of goods and services was estimated at Nu 132.7bn, a drop of Nu 4bn from the previous year.
Within the total imports, goods accounted for 78.62 per cent while a little 21.38 per cent was services import.
Despite the drop in total imports, the import of services grew significantly by 35.38 per cent compared to 2022.
The decrease in imports and increase in exports meant the trade deficit saw a sharp decline from Nu 78.7bn in 2022 to Nu 62.1bn last year.
Sherub Dorji
