Most of the indicators of the country’s economy have shown positive growth during the first five months of the current fiscal year.
As per the country’s current macroeconomic and financial situation of the first five months released by the central bank on Thursday, most of the economic indicators have emerged positive as inflation has decreased and the country has shown robust remittance inflows and 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 the review period, merchandise imports decreased 3.4 percent to Rs 642.21 billion compared to a decrease of 20.7 percent a year ago. Destination-wise, imports from India and other countries decreased 1.3 percent and 28.4 percent respectively while imports from China increased 32.8 percent.
Imports of readymade garments, M.S. wire rod, bars, and coils, electrical equipment, textiles, aircraft spareparts, among others increased whereas imports of gold, crude soyabean oil, crude palm oil, petroleum products, rice/paddy, among others decreased.
The total trade deficit decreased 3.1 percent to Rs 579 billion during the review period. Such a deficit had decreased 18.8 percent 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, the NRB stated in its report.
During the period, the remittance inflow recorded a robust growth of 27.6 percent to Rs 613.25 billion in the review period compared to an increase of 23.0 percent in the same period of the previous year.
Similarly, the balance of payment has remained at a surplus of Rs 210.59 billion in the first five months of the current fiscal year which was at a surplus of Rs 45.87 billion in the same period of the previous year.
The central bank stated that the gross foreign exchange reserves increased 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 NRB increased 15.6 percent to Rs 1556.25 billion in mid-December 2023 from Rs 1345.78 billion in mid-July 2023.
