NRB report highlights resilient economic performance amidst global uncertainties (with full report)

KATHMANDU: In the face of global economic uncertainties, Nepal's macroeconomic indicators have shown resilience and stability, according to the latest data released by the Nepal Rastra Bank (NRB) covering the six months ending mid-January, 2023/24.

Inflation Holds Steady

Consumer Price Index (CPI)-based inflation remained steady at 5.26 percent year-on-year, indicating a maintained level of price stability within the economy.

Trade Dynamics

Despite challenges, the country saw a notable improvement in trade figures.

Imports decreased by 3.1 percent, while exports experienced a decline of 7.2 percent.

This reduction led to a decrease of 2.6 percent in the trade deficit, reflecting a more balanced trade scenario.

Remittances Surge

In a positive development, remittances surged significantly, with an increase of 25.3 percent in Nepalese Rupee (NPR) terms and 22.6 percent in United States Dollar (USD) terms.

This influx of remittances is expected to bolster domestic consumption and investment.

Robust Balance of Payments

Nepal maintained a surplus in its Balance of Payments, with a surplus of Rs. 273.52 billion, indicating a stable external position.

Gross foreign exchange reserves stood at NPR 1816.57 billion, demonstrating the country's resilience to external shocks.

Government Expenditure and Revenue

The Nepal Government's expenditure amounted to Rs. 566.62 billion, indicating a commitment to infrastructure development and social welfare programs.

Revenue collection stood at Rs. 496.50 billion, underscoring efforts towards fiscal sustainability.

Monetary Indicators

Broad money (M2) increased by 6.4 percent, with a significant expansion of 14.3 percent year-on-year.

Deposits at Banking and Financial Institutions (BFIs) rose by 6.6 percent, while private sector credit increased by 4 percent.

Year-on-year comparisons show deposits increasing by 14.9 percent and private sector credit by 4.9 percent, reflecting sustained confidence in the banking sector.

For further details and analysis, refer to the full report released by the Nepal Rastra Bank below: