Current state of Nepali economy
Kathmandu—Here are the major points of the monthly report published by Nepal Rastra Bank about the current state of the Nepali economy. The Central Bank published a report on August 18, 2024.
- Annual average Inflation remained at 5.44 percent.
- Imports and exports decreased 1.2 percent and 3.0 percent respectively.
- In the previous year, imports and exports decreased by 16.1 percent and 21.4 percent respectively.
- Remittances increased 16.5 percent in Nepalese rupee and 14.5 percent in USD.
- Balance of Payments remained at a surplus of Rs.502.49 billion compared to a surplus of Rs.285.82 billion last year.
- Gross foreign exchange reserves stood at USD 15.27 billion. This level of foreign exchange reserve is sufficient to cover the merchandise and services imports for 13 months.
- Broad money (M2) expanded by 13.0 percent.
- Deposits at Banks and Financial Institutions increased 13.0 percent and private sector credit increased 5.8 percent.
- Total deposits at BFIs stood at Rs.6452 billion and private sector credit amounted to Rs.5074 billion.
Further, the year-to-year consumer price inflation stood at 3.57 percent in mid-July 2024 compared to 7.44 percent a year ago. The annual average consumer price inflation stood at 5.44 percent in FY 2023/24 compared to 7.74 percent a year ago.
Remittance inflows increased 16.5 percent to Rs.1445.32 billion during 2023/24 compared to an increase of 23.2 percent in the previous year. In the US Dollar terms, remittance inflows increased 14.5 percent to 10.86 billion in the review year compared to an increase of 13.9 percent in the previous year.
The current account remained at a surplus of Rs.221.34 billion in the review year compared to a deficit of Rs.46.57 billion in the previous year. In the US Dollar terms, the current account registered a surplus of 1.66 billion in the review year compared to deficit of 360.6 million in the previous year.
