Major Indicators of Economy Positive: NRB Report

  429 times read   3 min 59 sec to read
Major Indicators of Economy Positive: NRB Report

November 26: The major indicators of Nepal’s economy are positive despite the impact of coronavirus. The country’s foreign trade, remittance inflow, balance of payment are all improving, according to the latest report of Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation of Nepal released by the central bank on Wednesday (November 25) shows that the flow of loan from banks and financial institutions (BFIs) to the private sector in the firs three months of the current fiscal year has increased by four percent. The flow of loan from BFI to the private sector during the corresponding period of last fiscal year had increased by 4.3 percent.

In three months of 2020/21, merchandise exports increased14.3 percent to Rs.31.05 billion compared to an increase of 14.4 percent in the same period of the previous year.

Destination-wise, exports to India and other countries increased 19.4 percent and 7.4 percent respectively whereas exports to China decreased 53.2 percent.

According to the report, exports of jute goods, polyster yarn and threads, noodles, cardamom, and pashmina among others increased whereas exports  of palm oil, pulses, zinc sheet, handicrafts, and skin among others  decreased in the review period.

In three months of 2020/21, merchandise imports decreased 12.7 percent to Rs.292.27 billion compared to a decrease of 10.3 percent a year ago.

Destination-wise, imports from India, China and other countries decreased 6.6 percent, 26.9 percent, and 19.0 percent respectively.

The report states that imports of rice, crude soybean oil, telecommunication equipment and parts, edible oil, and coal among others increased, whereas imports of petroleum products, transport equipment and parts, aircraft spareparts, other machinery and parts, and crude palm oil among others decreased in the review period.

Total trade deficit narrowed down 15.1 percent to Rs.261.22 billion in three months of 2020/21. Such  deficit had contracted 12.0 percent in the same period of the previous year. The export-import ratio increased to 10.6 percent in the review period from 8.1 percent in the same period of the previous year.

Remittance inflows increased 12.6 percent to Rs.258.86 billion in the review period against a decrease of 5.1 percent in the same period of the previous year. In the US Dollar terms, remittance inflows increased 7.6 percent to 2.18 billion in the review period against a decrease of 4.7 percent in the same period of the previous year.

The current account remained at a surplus of Rs.34.36 billion in the review period against a deficit of Rs 22.47 billion in the same period of the previous year. In the US Dollar terms, the

current account recorded a surplus of 288.2 million in the review period against a deficit of 198.4 million in the same period last year.

Balance of Payments (BOP) registered a surplus of Rs.101.09 billion in the review period. Such surplus was Rs.14.43 billion in the same period of the previous year. In the US Dollar terms, the BOP recorded a surplus of 851.0 million in the review period compared to a surplus of 127.8 million in the same period of the previous year.

The year-on-year consumer price inflation stood at 3.79 percent in the third month of 2020/21 compared to 6.21 percent a year ago.

Food and beverage inflation stood at 5.50percent whereas non-food and service inflation stood at 2.46 percent in the review month.

 

 

 

No comments yet. Be the first one to comment.