KATHMANDU: The indicators of inflation, current account deficit and foreign direct investment are poor while indicators of remittances, balance of payment and foreign exchange reserves are positive, according to the current macroeconomic and financial situation of Nepal for the fiscal year, 2022/23 published by the Nepal Rastra Bank.
Against the target of keeping within the desired limit of 7%, the annual average consumer price inflation stood at 7.74% in FY 2022/23 as compared to 6.32% in FY 2021/22.
Similarly, during the FY, merchandise exports decreased 21.4% to Rs 157.14 billion against an increase of 41.7% in the previous FY.
The current account deficit stood at Rs 72.16 billion. In the review year, capital transfer decreased 24.5% to Rs 7.54 billion against Rs 9.99 billion in the previous FY, and net foreign direct investment remained at Rs 5.96 billion against Rs 18.56 billion.
Remittance inflows increased 21.2% to Rs 1220.56 billion against an increase of 4.8% in the previous FY. In US dollar terms, remittance inflows increased 12.1% to 9.33 billion in the review year as compared to an increase of 2.2% in the previous FY.
Similarly, gross foreign exchange reserves increased 26.6% to Rs 1539.36 billion in mid-July 2023 from Rs 1215.80 in mid-July 2022. In the US dollar terms, gross foreign exchange reserves increased 23.1% to 11.74 during the same period against 9.54 billion during the same period in the previous FY.
Deposits at banks and financial institutions (BFIs) increased 12.3% in the review year as compared to a growth of 9.0% in the previous FY. Private sector credit from BFIs increased 3.8% as opposed to a growth of 13.1% in the previous FY.
