BoP had remained in deficit until the tenth month of 2010/11 with highest deficit of Rs 14.79 billion recorded in the ninth months of the fiscal year. Nepal Rastra Bank (NRB), which released the macroeconomic report for the last fiscal year on Monday, also attributed the improvement in BOP to the moderation in the current account deficit, which shrank to Rs 11.91 billion. [break]
According to NRB, the country´s trade deficit increased by 5.4 percent to Rs 330.34 billion during the year. Exports in 2010/11 grew by 6.1 percent while imports grew at a much slower rate of 5.5 percent.
During the year, Nepal received Rs 253.55 billion in remittances, which grew at 9.4 percent over last year´s receipt. The country also received Rs 6.44 billion in foreign direct investments during the year.
As a result, the country´s gross foreign exchange reserves increased by 1.2 percent to Rs 272.10 billion in mid-July 2011. The reserves were at Rs 268.91 billion in mid-July 2010.
The annual average inflation remained at 9.6 percent in 2010/11, reads the report of NRB. Despite a 14.7 percent rise in food prices, the annual average consumer price inflation moderated because prices of non-food items and services grew at a low rate of 5.4 percent.
Annual average salary and wage rate index rose by 18 percent in 2010/11.
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