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Nepal’s Economic Performance Shows Positive Trends

In a recent report by the Nepal Rastra Bank, Nepal’s economy has displayed favorable trends over the past nine months. The report highlights stable Consumer Price Index (CPI)-based inflation, a surplus in the balance of payments, and an increase in foreign exchange reserves.

CPI-based inflation dropped to 4.61 percent year-on-year, a significant decrease from the previous year. While certain sectors experienced fluctuations, overall inflation management has been positive. Additionally, there has been a surplus in the current account and Balance of Payments (BOP), indicating economic strength.

Remittance inflows into Nepal have also surged, increasing by 19.8 percent in the review period. This growth, although slightly lower than the previous year, underscores the importance of remittances to Nepal’s economy.

Furthermore, Nepal’s gross foreign exchange reserves have seen a notable increase, signaling enhanced economic stability. The reserves held by the Nepal Rastra Bank and other financial institutions have both grown substantially, reflecting the country’s capacity to navigate economic challenges effectively.

In terms of fiscal management, Nepal has seen a decline in government expenditure alongside growth in revenue collection. This shift towards positive revenue growth indicates improved financial management and lays a foundation for sustainable economic development.

Overall, Nepal’s economic landscape is showing positive signs, with growth in various key indicators. Monitoring these trends closely will be crucial for policymakers and stakeholders to ensure continued economic stability and growth in the country.