Nepal’s Economic Indicators Show Stability Amid Growth in Key Sectors: NRB Report
Kathmandu – The Nepal Rastra Bank (NRB) has released data reflecting the country’s economic and financial condition for the first ten months of the fiscal year 2081/82. The figures point to stable macroeconomic fundamentals, bolstered by improvements in foreign exchange reserves, remittances, trade performance, and credit growth.
According to NRB, the year-on-year consumer price index (CPI) inflation stood at 2.77 percent, indicating moderate inflationary pressure in the economy. Meanwhile, the balance of payments remained positive, recording a substantial surplus of Rs. 438.52 billion, signaling improved external sector health.
Trade activity experienced notable growth, with imports rising by 13.1 percent and exports surging by 72.7 percent. This sharp rise in exports is viewed as a positive shift toward narrowing the trade deficit. Remittance inflows, a crucial pillar of Nepal’s economy, increased by 13.2 percent in Nepalese rupees and 10.5 percent in US dollars.
The country’s gross foreign exchange reserves reached USD 18.40 billion, further strengthening the external buffer and import sustainability.
On the fiscal front, government expenditure totaled Rs. 1157.89 billion, while revenue collection reached Rs. 922.43 billion, indicating a budget deficit that will require close monitoring in the coming months.
In terms of monetary aggregates, broad money (M2) increased by 6.6 percent overall, and by 11.4 percent on a year-on-year basis, suggesting expanding liquidity in the system. Deposits at banks and financial institutions (BFIs) rose by 6.2 percent, while private sector credit grew by 7.3 percent. On a year-on-year basis, deposits climbed by 11.4 percent, and private sector credit rose by 8.4 percent.
Overall, Nepal’s economy appears to be on a path of cautious recovery and growth, supported by improved remittance inflows, robust export performance, and growing liquidity. However, challenges such as the fiscal deficit and sustained private sector credit demand will require continued policy attention in the remaining months of the fiscal year.
