External Sector Performance - August 2026

The external current account recorded a surplus of US$ 133 million in August 2026 following four consecutive months of deficits. The surplus was supported by the lower trade deficit compared to recent months, reflecting lower import expenditure. The current account recorded a cumulative deficit of US$ 291 million during January-August 2026, reflecting pressures on the external sector stemming from the escalation of the Middle East conflict. On a year-on-year basis, the merchandise trade deficit widened in August 2026, driven by higher import expenditure and lower export earnings. Meanwhile, the cumulative trade deficit widened to US$ 7.2 billion during January–August 2026, compared to US$ 4.3 billion in the corresponding period of 2025. Monthly fuel import expenditure declined for the fourth consecutive month in August 2026. Cumulative fuel import expenditure amounted to approximately US$ 4.0 billion during January–August 2026, recording a 61.6% (year-on-year) increase compared to the corresponding period of 2025.  Expenditure on motor vehicle imports, including both personal and commercial vehicles, amounted to US$ 189 million in August 2026, recording a 24.2% decline comp...