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in the BOP during the first three quarters of 2013, compared to the same period in 2012,” the Central Bank said.
Both earnings from exports and expenditure on imports have recorded significant year-on-year growth in September 2013. Earnings from exports grew by 11.1% year-on-year to $ 890 million, while expenditure on imports increased by 22.8% to $ 1,614 million in September 2013.
On a cumulative basis, during the first nine months of 2013, earnings from exports turned positive increasing by 0.3%, while expenditure on imports continued to contract by 0.9% from the corresponding period in 2012.
Although, the trade deficit of the BOP increased significantly by 41.1% year-on-year to $ 698 million in September 2013, the cumulative trade deficit during the first nine months of 2013 contracted by 2.1% to $ 6,721 million, from $ 6,869 million during the corresponding period of 2012.
Earnings from exports continued to accelerate in September 2013 recording positive growth in all major sectors. This growth was mainly led by a significant increase in earnings from industrial exports.
Earnings from industrial exports increased on a year-on-year basis, by 12.4% to $ 638 million in September 2013 mainly due to strong growth in textiles and garments exports, which increased significantly by 27.7% to $ 387 million.
Garment exports to both the EU and the USA, which are major export destinations, recorded a remarkable growth of 30.7% and 32.2%, respectively, in September 2013, reflecting the recovery in those economies.
Earnings from rubber product exports rose by 28%, year-on-year to $ 73 million mainly due to the lower base. Earnings from the export of machinery and mechanical appliances, transport equipment, chemical products, leather products and base metals also contributed to the growth in industrial exports. However, export of gems, diamonds and jewellery which has recorded negative year-on-year growth throughout the year continued to contract by 23.4% in September 2013 mainly due to low international prices.
Earnings from agricultural exports rose by 6% to $ 239 million in September 2013 mainly due to an increase in export earnings from spices followed by seafood. Earnings from the export of spices increased significantly to $ 41 million led by an increase in volumes as well as the price 
of pepper and cloves, while earnings from seafood exports increased by 42.1% due to the lower base.
However, earnings from tea exports which account for 15.8% of total exports declined marginally by 0.6%, year-on-year, due to the decline in export volumes, despite a 9.9% increase in prices.
Export earnings from rubber, which has declined continuously during the last 25 months continued to decline in September 2013 contracting by 38.9% compared to September 2012 due to low international prices and low export volumes.
Expenditure on imports increased by 22.8% to $ 1,614 million in September 2013, due to unusually low imports in September 2012. Increases were recorded in all three major import categories.
Expenditure on intermediate goods imports rose by 26.7%, year-on-year, to $ 1,045 million in September 2013, due to the significant increase in expenditure on fuel. Import expenditure on fuel increased by 61.5%, year-on-year, to $ 517 million in September 2013 mainly due to the non-importation of crude oil in September 2012. Expenditure on fertiliser imports also increased by 51%, year-on-year, to ensure availability of adequate stocks for the upcoming Maha season.
However, expenditure on diamonds and precious stones, wheat and maize, textiles and textile articles and agriculture inputs declined during the month. The importation of investment goods increased by 19.7% to $ 335 million in September 2013, mainly due to a sharp increase in import of machinery and equipment and building materials.
Meanwhile, expenditure on consumer goods imports increased by 13.1%, year-on-year, in September 2013 led by an increase in non-food consumer goods. Expenditure on importation of vehicles, under consumer goods which began to decline from April 2012 in response to the policy measures taken in 2012, has reversed since June 2013.
Vehicle imports increased by 99.6%, year-on-year in September 2013, making the highest contribution to the increase in consumer goods imports. Seafood, oil and fats, medical and pharmaceuticals and clothing and accessories were amongst the other consumer goods which contributed to the increase in consumer goods imports. However, import expenditure on dairy products, vegetables and beverages declined in September 2013.
