Trade deficit for May 2015 slims to $10.4 billion. Here’s what it means

The trade deficit for May has shrunk to $10.4 billion. It is marginally lower that of April 2015. Exports and imports continue to fall at 20.2% and 16.5% respectively.

Low crude oil prices and poor growth globally have affected exports, even as the dawdling impact of oil prices has limited exports.

Here are the key findings from what the figures say:

Imports are down too
Imports have deflated 16.5% versus the April 2015 figure. Imports have shriveled in the past six months.

Exports are declining
Exports are sliding as of May. The figure has shrunk to 20%. Exports have averaged a 17.3% decrease in the past four months. This is due to the lagged impact of low oil prices.

Non-oil growth have turned negative
Non-oil imports have turned negative (-2.2%) in May. That’s the first time since August 2014. Gold imports are also in a three month low of $2.4 billion as of May 2015.

Oil imports are in single digits
Oil imports are limited in single digits for the 5th consecutive month. Oil imports are pegged at $8.5 billion as of May 2015.

Services trade surplus has fallen still
The trade surplus has fallen to $5.7 billion in April 2015. The figure has fallen to an eight-month-low.

Trade-deficit figures have stabilized
The trade deficit for May has gone down to a three month low $10.4 billion.

(Image credit: Indiatimes)