Current Macroeconomic Situation of Nepal

Current Macroeconomic Situation of Nepal (Based on Nine months Data -Mid-July 2020 to Mid-April 2021)

• The y-o-y consumer price inflation stood at 3.10 percent.

• Merchandise exports increased 20.2 percent to Rs.94.77 billion compared to an increase of 12.9 percent in the same period of the previous year.

• Merchandise imports increased 13.1 percent to Rs.1111.40 billion against a decrease of 7.5 percent a year ago.

• Total trade deficit increased 12.5 percent to Rs.1016.63 billion in nine months of 2020/21. Such deficit had decreased 8.9 percent in the same period of the previous year.

  

   

• Remittance inflows increased 16.5 percent to Rs.729.02 billion in the review period against a decrease of 4.2 percent in the same period of the previous year.

• Number of Nepali workers taking approval for foreign employment decreased 66.7 percent in the review period. It had increased 10.2 percent in the same period of the previous year.

• The current account remained at a deficit of Rs.207.41 billion in the review period compared to a deficit of Rs.126.09 billion in the same period of the previous year.

• Balance of Payments (BOP) registered a surplus of Rs.42.54 billion in the review period as compared to a surplus of Rs.36.61 billion in the same period of the previous year.

• Gross foreign exchange reserves increased 2.2 percent to Rs.1433.27 billion in mid-April 2021 from Rs.1401.84 billion in mid-July 2020.

• The foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 11.9 months, and merchandise and services imports of 10.8 months.

• Nepalese currency vis-à-vis the US Dollar appreciated 0.5 percent in mid-April 2021 from mid-July 2020. It had depreciated 10.2 percent in the same period of the previous year.

• Total expenditure of the federal government according to data of Financial Comptroller General Office(FCGO), Ministry of Finance, stood at Rs.690.28billion.

• Revenue mobilization(including the amount to be transferred to provincial and local governments) stood at Rs.683.87billion.

• Domestic debt mobilization of federal government amounted Rs.112.52billion, including Rs.20.5billion through treasury bills, Rs.90 billion through development bonds, Rs.2 billion through citizen saving certificates and Rs.15.3million through foreign employment bond.

• Broad money (M2) expanded 14.2percent in the review period compared to the growth of 8.9percent in the corresponding period of the previous year. On y-o-y basis, M2 expanded 23.9percent in mid-April 2021.

• Domestic credit increased 16.4percent in the review period compared to a growth of 9.1percent in the corresponding period of the previous year. On y-o-y basis, domestic credit increased 21.1percent in mid-April 2021.

• Deposits at Banks and Financial Institutions (BFIs) increased 13.7 percent in the review period compared to a growth of 9.7 percent in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 23.0 percent in mid-March 2021.

• Private sector credit from BFIs increased 22.5percent in the review period compared to a growth of 11.5percent in the corresponding period of previous year. On y-o-y basis, credit to the private sector from BFIs increased 23.1percent in mid-April 2021.

• During the review period, NRB mopped up Rs.303.29 billion liquidity of which Rs.109.54 billion was through reverse repo auction and Rs.193.75 billion through deposit collection. In the review period, NRB injected liquidity of Rs.1.02 billion through repo and Rs.7.12 billion through standing liquidity facility (SLF). In the corresponding period of the previous year, Rs.58 billion liquidity mopped up through reverse repo auction of Rs.28 billion and deposit collection of Rs.30 billion.

• Outstanding amount of refinance provided by NRB remained Rs.123.14 billion in mid-April 2021to 48860 borrowers.

• Weighted average deposit rate and lending rate of commercial banks stood at 4.79 percent and 8.61 percent respectively in the review month. Such rates were 6.74 percent and 11.77 percent respectively a year ago.

• NEPSE index stood at 2714.8 in mid-April2021compared to 1251.5in mid-April2020. Such an index was 1362.4 in mid-July 2020.57.

• Stock market capitalization in mid-April2021 stood Rs.3758.98 billion compared to Rs.1792.76 billion in mid-July 2020.

   

  Permanent Source : here