Data on economic scenario of 10 months of current fiscal released

KATHMANDU, JUNE 11: Despite the decrease in the number of people going abroad in the current fiscal year, remittance inflow into the country has increased at a sustained rate of around 20 percent due to the robust exchange rate of the US dollar and a few other reasons. The country has received Rs 1198.6 billion in remittances in the first ten months of the current fiscal year 2023/24.

Releasing the current macroeconomic and financial situation based on the first ten months of FY 2023/24 yesterday, the Nepal Rastra Bank (NRB) said remittance inflows increased by 19.2 percent compared to an increase of 23.4 percent in the same period of the previous year. “In US Dollar terms, remittance inflows increased by 17.1 percent to 9.02 billion in the review period compared to an increase of 13.4 percent in the same period of the previous year,” the central bank said.

During the period, the number of Nepali workers taking approval for foreign employment stood at 374,887, and those taking approval for reentry at 237,893. In the previous year, the numbers were 421,279 and 238,976, respectively.

Consumer price inflation moderated to 4.4 percent in the first ten months of the current fiscalcompared to 7.41 percent a year ago. Food and beverage category inflation stood at 6.27 percent, whereas non-food and service category inflation stood at 2.96 percent in the review month.

According to the central bank, the current account has remained at a surplus of Rs 193.25 billion during the review period against a deficit of Rs 63.74 billion in the same period of the previous year.

In the review period, the net foreign direct investment (FDI) remained positive at Rs 6.98 billion. In the same period of the previous year, the net FDI was Rs 4.36 billion, the NRB stated in its report.

Similarly, the Balance of Payments (BOP) remained at a surplus of Rs 392.64 billion in the review period against a surplus of Rs 209.49 billion in the same period of the previous year.

Despite improvement over the last fiscal year, merchandise exports continued to decrease in the review period of the current fiscal year. Merchandise exports decreased by 3.6 percent to Rs 126.17 billion compared to a decrease of a whopping 24.5 percent in the same period of the previous year.

Nepal’s exports to India decreased by 5.6 percent, whereas exports to China increased by 68.1 percent, the central bank stated.

Likewise, imports decreased by 2.4 percent to Rs 1303.36 billion compared to a decrease of 16.8 percent a year ago. According to the NRB, imports from India and other countries decreased by 3.4 percent and 20.8 percent, respectively, while imports from China increased by 34.4 percent.

It said that exports of zinc sheets, particle boards, juice, readymade garments, and oil cakes, among others, increased, whereas exports of palm oil, soybean oil, woolen carpets, and tea, among others, decreased.

Imports of transport equipment, vehicles and other vehicle spare parts, readymade garments, aircraft spare parts, electrical equipment, and textiles, among others, increased, whereas imports of crude soybean oil, gold, hot rolled sheets in coils, crude palm oil, and rice/paddy, among others, decreased.

The gross foreign exchange reserves increased by 26.2 percent, reaching Rs 1942.4 billion in mid-May 2024, compared to Rs 1539.36 billion in mid-July 2023. In US dollar terms, the gross foreign exchange reserves increased by 24.2 percent to 14.54 billion in mid-May 2024 from 11.71 billion in mid-July 2023.