KATHMANDU, JANUARY 11
Positive growth seen in most economic indicators for the first five months of the current fiscal year.
During the initial five months of the current fiscal year, the country's economy has witnessed positive growth in most indicators. The central bank's recent release on the nation's macroeconomic and financial situation for this period highlights a decrease in inflation, robust remittance inflows, and increased foreign reserves.
According to the Nepal Rastra Bank (NRB), the year-on-year consumer price inflation moderated to 4.95 percent in mid-December 2023, compared to 7.38 percent a year ago.
In this period, merchandise imports decreased by 3.4 percent to Rs 642.21 billion, with a 1.3 percent decrease in imports from India, a 28.4 percent decrease from other countries, and a 32.8 percent increase in imports from China.
Specifically, imports of various items such as readymade garments, M.S. wire rod, bars, and coils, electrical equipment, and textiles increased, while imports of gold, crude soybean oil, crude palm oil, petroleum products, and rice/paddy decreased.
The total trade deficit decreased by 3.1 percent to Rs 579 billion during the review period, compared to an 18.8 percent decrease in the corresponding period of the previous year. The export-import ratio decreased to 9.8 percent in the review period from 10.1 percent in the corresponding period of the previous year, as reported by the NRB.
Remittance inflow recorded robust growth of 27.6 percent to Rs 613.25 billion during the review period, compared to a 23.0 percent increase in the same period of the previous year.
The balance of payment remained at a surplus of Rs 210.59 billion in the first five months of the current fiscal year, contrasting with a surplus of Rs 45.87 billion in the same period of the previous year.
The central bank stated that gross foreign exchange reserves increased by 14.8 percent to Rs 1767.04 billion in mid-December 2023 from Rs 1539.36 billion in mid-July 2023.
Of the total foreign exchange reserves, reserves held by the NRB increased by 15.6 percent to Rs 1556.25 billion in mid-December 2023 from Rs 1345.78 billion in mid-July 2023.
