Nepal’s economic landscape demonstrates resilience and positive growth trajectories across several key indicators as per the latest report by the Nepal Rastra Bank (NRB).
The report highlights encouraging trends in various economic facets:
Inflation Trends:
- CPI-based inflation remained stable at 4.61 percent year-on-year (y-o-y), down from 7.76 percent compared to the previous year.
- Food and beverage inflation stood at 5.21 percent, while non-food and service inflation was at 4.14 percent.
- Notable increases were observed in the price index of spices (22.64 percent), vegetables (16.99 percent), and miscellaneous goods and services (12.81 percent).
Remittance and Employment:
- Remittance inflows surged by 19.8 percent to Rs. 1082.62 billion, signifying sustained support to the economy.
- Despite challenges, the number of Nepali workers seeking foreign employment remained robust, with 329,422 first-time approvals recorded.
Balance of Payments (BOP) and Foreign Reserves:
- BOP remained in surplus, reaching Rs. 365.16 billion, indicating stability in external accounts.
- Gross foreign exchange reserves witnessed a significant uptick of 24.2 percent, reaching Rs. 1911.86 billion.
- The share of Indian currency in reserves stood at 21.6 percent, reflecting regional economic ties.
Government Expenditure and Revenue:
- Government expenditure totaled Rs. 909.39 billion, while revenue collection amounted to Rs. 748.04 billion.
- Revenue mobilization saw a positive growth of 9.4 percent, driven by tax revenues totaling Rs. 671.12 billion.
Monetary Indicators:
- Broad money (M2) expanded by 7.5 percent, indicating increased liquidity in the economy.
- Net foreign assets (NFA) surged by 25.1 percent, contributing to overall monetary stability.
Trade Balance:
- Total trade deficit narrowed by 2.8 percent to Rs. 1053.42 billion, showcasing improved trade dynamics.
Overall, Nepal’s economic performance reflects resilience and adaptability amidst global uncertainties, supported by prudent fiscal policies and robust remittance inflows.
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