Trade deficit blamed for currency slump, report reveals

Trade deficit may lead to currency slide and export incompetency, according to Lower House Public Joint Committee’s report on the first half-year budget turnovers.

The committee’s report urged the government to find ways to cope with the rising trade gap in terms of market-based economic strategies as it could hinder foreign investment flow.

In addition, it was suggested that state budget also needs review and the governmental organisations should be scrutinised to find out if there are any leaks.

Between April 1 and February 6, the country spent US$13.8 billion on imports and earned $9.6 billion from exports resulting in deficit of $4.2 billion. Last fiscal year, the deficit was $2.6 billion. And many experts believe this year the country will suffer a record trade deficit.