KATHMANDU: In the two months of the current fiscal year 2024/25 ending mid-September, remittance inflows increased by 15.5%, while exports of goods and services from Nepal declined by 5.1%, according to the ‘Current Macroeconomic and Financial Situation’ report released by the Nepal Rastra Bank.
This inverse relationship between remittance and exports is largely due to the increased inflow of remittances during major festivals like Dashain and Tihar, where higher consumer spending typically occurs.
Additionally, part of the goods previously exported abroad was consumed domestically during this period.
During this period, imports grew by 1.1%, while exports dropped by 5.1%.
The report also revealed that the y-o-y inflation, based on the consumer price index, stood at 3.85%, a significant decrease from 8.19% in the same month last year.
Nepal’s balance of payments remained at a surplus of Rs.101.77 billion, and the total foreign exchange reserves stand at Rs. 2152.53 billion, equivalent to USD 16.04 billion.
Government expenditure reached Rs. 137.55 billion by mid-September, while revenue collection amounted to Rs. 166.39 billion.
The broad money supply increased by 0.4% on a monthly basis, and by 13.9% on an annual basis.
Deposits at banks and financial institutions grew by 0.5%, and credit to the private sector rose by 1.4%.
On an annual basis, the growth rate of deposits was 13.8%, while the growth of credit to the private sector was 6.6%, according to the central bank.
