Nepal’s economy shows signs of improvement


August 17, 2022


Nepal’s economy shows signs of improvement

KATHMANDU: There are signs of improvement in the Nepal’s economy dreaded to be down-trending earlier. Compared to the previous fiscal year, although the economy is still under pressure, the economy has shown some positive indications of improvement in the last couple of months.

In the previous fiscal year, the economy was not only in a negative state but seemed shrinking, but the statistics made public by Nepal Rastra Bank on Tuesday, the economy is improving.

At the beginning of last year, there was great pressure in the external sector. There was a big contraction in foreign exchange reserves and there was also a decrease in remittances. The balance of payment was also at a great loss. However, that situation is decreasing now.

Although inflation has increased compared to the previous financial year, it has decreased compared to last month.

Between mid-June and mid-July, the annual point of consumer inflation was 8.08 percent. Between mid-May to mid-June, the annual point of consumer inflation was 8.56 percent. According to Nepal Rastra Bank, such inflation was 4.19 percent in the mid-June to mid-July period of the fiscal year 2020/21.

According to the National Bank of India, due to the global increase in the prices of fuel and food items, disruptions in the supply system, and the depreciation of the Nepali currency against the US dollar, inflation has remained under pressure in the last months of the fiscal year 2021/22.

Compared to the previous financial year, in the financial year 2021/22, under the food and beverages group, the price increase of ghee and oil, pulses and cereals, tobacco products, and alcoholic beverages sub-groups was 26.13 percent, 9.92 percent, 9.84, percent and 8.57 percent respectively.