Current Macroeconomic and Financial Situation of Nepal

Current Macroeconomic and Financial Situation of Nepal

(Based on the First Month of 2021/22-

Mid July to Mid-August 2021) 

• The y-o-y consumer price inflation stood at 4.35 percent.
• Merchandise exports increased 115.9 percent to Rs.20.76 billion compared to an increase of 8.9 percent in the same period of the previous year.
• Merchandise imports increased 75.7 percent to Rs.150.73 billion against a decrease of 19.6 percent a year ago.
• Total trade deficit increased 70.6 percent to Rs.129.97 billion during the first month of 2021/22. Such a deficit had decreased 22.2 percent in the same period of the previous year.
• Remittance inflows decreased 18.1 percent to Rs.75.96 billion in the review period in contrast to an increase of 23.0 percent in the same period of the previous year.
• Number of Nepali workers taking approval for foreign employment increased significantly to 13,800 in the review period. It had decreased 99.2 percent in the same period of the previous year.
• The current account remained at a deficit of Rs.47.90 billion in the review period compared to a surplus of Rs.24.89 billion in the same period of the previous year.
• BOP registered a deficit of Rs.38.75 billion against a surplus of Rs.51.46 billion in the same period of the previous year.
• Gross foreign exchange reserves decreased 3.2 percent to Rs.1353.82 billion in mid-August 2021 from Rs.1399.03 billion in mid-July 2021.
• Foreign reserves of the banking sector is sufficient to cover the prospective merchandise and services imports of 8.3 months.
• Total expenditure of the federal government stood at Rs.10.49 billion.
• Revenue mobilization stood at Rs.93.26 billion.
• Broad money (M2) decreased 1.6 percent compared to the growth of 0.3 percent in the corresponding period of the previous year.
• Deposits at BFIs decreased 1.6 percent compared to a decrease of 0.1 percent in the corresponding period of the previous year.
• Private sector credit from BFIs increased 1.2 percent compared to a decrease of 0.5 percent in the corresponding period of previous year.
• The outstanding amount of refinance provided by NRB remained Rs.118.49 billion in mid-August 2021.
• Weighted average deposit rate and lending rate of commercial banks stood at 4.76 percent and 8.48 percent respectively. Such rates were 5.77 percent and 10.47 percent respectively a year ago.
• BFIs licensed by NRB remained 133 in mid-August 2021 including 27 commercial banks, 18 development banks, 17 finance companies, 70 microfinance financial institutions and 1 infrastructure development.
• NEPSE index stood at 3160.1 in mid-August 2021 compared to 1391.5 in mid-August 2020.
• Stock market capitalization in mid-August 2021 stood Rs.4414 billion compared to Rs.1837 billion in mid-August 2020.
• Number of companies listed at NEPSE reached 220 in mid-August 2021.
• Share of BFIs and insurance companies in stock market capitalization is 68.2 percent.

 Source : Nepal Rastra Bank