Nepal Rastra Bank has reported a wave of positive developments in the country’s macroeconomic indicators, offering a sign of recovery amid continued concerns over Nepal’s broader economic challenges. In its latest publication, The Current Macroeconomic and Financial Situation of Nepal, the central bank highlights improvements in several key areas, including the balance of payments, current account surplus, foreign currency reserves, credit expansion, inflation, and trade.
As of mid-June, Nepal’s balance of payments recorded a surplus of Rs 491.44 billion, compared to Rs 425.67 billion during the same period last fiscal year. In U.S. dollar terms, the surplus increased from 3.2 billion to 3.62 billion dollars. Likewise, the current account has shown a notable turnaround, rising from a surplus of Rs 200.38 billion to Rs 307.31 billion. When converted to dollars, the current account surplus rose from 1.51 billion to 2.26 billion.
A major highlight of the report is the growth in Nepal’s foreign exchange reserves. By mid-June, gross reserves had reached Rs 2.569 trillion — a 25.9 percent increase in just eleven months. In U.S. dollar terms, reserves grew from 15.27 billion to 18.65 billion dollars, marking a 22.2 percent rise.
In addition to these external sector gains, credit expansion has also picked up. Banks and financial institutions disbursed Rs 407.62 billion in loans to the private sector over the review period, representing an annual increase of 8.7 percent. Of the total loans, 63 percent went to the non-financial institutional sector, while the remaining 37 percent supported individuals and households.
On the trade front, merchandise exports surged by an impressive 77.8 percent, reaching Rs 247.57 billion during the first eleven months of the fiscal year. Imports also increased by 13.1 percent to Rs 1.644 trillion, reversing last year’s slight decline. According to the NRB, the share of final consumption goods in imports was 39.4 percent, while intermediate goods accounted for 51.6 percent and capital goods made up 9.1 percent.
Perhaps most encouraging for households, the inflation rate has eased. The year-on-year consumer price inflation stood at 2.72 percent in mid-June, down from 4.17 percent a year ago. Food and beverage inflation slowed to just 0.54 percent, while non-food and service inflation came in at 3.94 percent. Regionally, prices in rural areas increased by 2.90 percent, while in urban areas they rose by 2.66 percent.
Altogether, the central bank’s findings present a cautiously optimistic view of Nepal’s economic direction, suggesting that while challenges remain, key macroeconomic foundations have started to stabilize — potentially paving the way for stronger growth momentum in the next fiscal year.
