KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The macroeconomic data presented by Nepal Rastra Bank reveals a stable but challenging economic environment in Nepal, with inflation holding steady at 6.05 percent year-on-year.
While inflation remains a concern, the country’s foreign exchange reserves and trade activities show positive trends, with exports rising significantly by 16.5 percent.
The performance of the Nepal Stock Exchange (NEPSE) also indicates growing investor confidence, reflected by a notable increase in the index.
However, inflationary pressures persist, particularly in wholesale prices, especially for consumption goods, highlighting potential challenges for cost of living.
Furthermore, the government’s efforts to amend laws for industrial and IT sector development, alongside tourism promotions like the recognition of Lumbini as a top destination, suggest that Nepal is aiming for diversified economic growth through both domestic policy reforms and international visibility.
Inflation remains at 6.05 percent y-o-y
Inflation in Nepal remained at 6.05 percent year-on-year (y-o-y), according to Nepal Rastra Bank.
The gross foreign exchange reserves amounted to USD 16.76 billion, and total imports and exports saw an increase of 3 percent and 16.5 percent, respectively.
The NEPSE index reached 2682.29 in mid-December 2024, compared to 1994.60 in the same period of 2023.
Regarding inflation, the y-o-y consumer price inflation stood at 6.05 percent in mid-December 2024, up from 4.95 percent a year earlier.
Additionally, the y-o-y wholesale price inflation was 6.52 percent, up from 2.63 percent in the previous year.
The wholesale prices for consumption goods, intermediate goods, and capital goods rose by 12.59 percent, 3.77 percent, and 3.20 percent, respectively, while the wholesale price of construction materials dropped by 4.14 percent during the review period.
Amendment of laws for economic development: Home Minister
Home Minister Ramesh Lekhak has said the amendment of laws through ordinance was for economic development of the country.
Minister Lekhak reminded that government had adopted the policy of utilizing and promoting national products.
“The ordinance will help amend laws, thereby paving way for industrial development and governance reform,” he added.
The amendment of laws was for facilitating export of IT services.
PM Oli commits to develop IT for earning foreign currency
Prime Minister KP Oli has expressed the belief that information technology (IT) would be developed as the industry to earn foreign currency.
Taking to social networking site—Facebook— today, PM Oli said there were some legal hurdles for those working in IT sector in Nepal, so the Cabinet meeting held on Friday addressed it through ordinance.
“The Friday’s Cabinet meeting recommended before the President through ordinance to make laws in order to facilitate earning foreign money from IT sector. We believe that the law will develop IT as the industry of earning foreign currency”, he mentioned.
Lumbini ranked 9th among 52 destinations in the world
The New York Times recent ranking of Lumbini, the birthplace of Lord Buddha, as one of the ’52 top places to go in 2025’is expected to further boost domestic and external tourism in Nepal.
Tourism entrepreneurs here are confident that the crowning of Lumbini as 9th out of ‘top 52 places to go in 2025’ by the New York Times will send a positive message for global tourism.
Lumbini has been attracting an increasing number of visitors in the recent years with over 1.1 million tourists visiting here in 2024 alone, according to the Lumbini Development Trust.
The enlisting of this place has not only unraveled the importance of cultural tourism of Nepal at the international level but it has also showcased Nepal’s ancient history at the global stage.
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