Nepal Rastra Bank Unveils FY 2023/24 Macroeconomic Overview

Nepal Rastra Bank (NRB) has presented a comprehensive overview of Nepal’s current macroeconomic and financial status based on data from the first eight months ending mid-March 2023/24.

Inflation and Trade

• Year-on-year inflation remained stable at 4.82%.
• Gross foreign exchange reserves reached USD 14.14 billion.
• Total imports decreased by 2.7%, exports by 4.0%, and trade deficit by 2.5%.
• Concessional loans extended to various sectors totaled Rs. 149.30 billion.
• NEPSE index rose to 2108.73 from 1953.06 a year ago.

Inflation Trends

• Consumer price inflation moderated to 4.82%, down from 7.44%.
• Wholesale price inflation decreased to 3.69%.
• Merchandise exports fell by 4.0%, while imports decreased by 2.7%.
• Remittance inflows increased by 21.0%.

Foreign Exchange and Reserves

• Gross foreign exchange reserves grew by 21.7% to Rs. 1872.82 billion.
• Reserves-to-imports ratio improved to 103.1%.
• Exchange rate depreciated by 0.73% against the USD.
• Government expenditure increased by 2.9% to Rs. 801.58 billion.
• Revenue mobilization rose by 9.7% to Rs. 639.05 billion.

Banking and Credit

• Domestic credit and claims on the private sector increased by 4.0% and 5.6% respectively.
• Deposits at BFIs expanded by 7.6% to Rs. 435.87 billion.
• Average base rates for commercial banks stood at 8.77%.

Balance of Payments

• Balance of Payments remained in surplus at Rs. 327.55 billion.

Overall, Nepal’s economy shows resilience and positive growth indicators amidst global economic fluctuations.