This is first time the country has reported such a big surplus ever since the central bank started compiling this figure in the fiscal year 1974/75. The country had recorded BoP deficit of Rs 5.72 billion recorded in the same period of last fiscal year.[break]
“The acceleration in remittance growth along with improvement in service account attributed to the surplus,” the NRB report says.
Workers´ remittances went up by 34.2 percent to Rs 103.2 billion in the first four months of the current fiscal year, while tourism income rose by 33.4 percent in the review period over 14.7 percent decline recorded during the similar period last fiscal year.
Foreign trade
Total trade deficit during the first four months of current fiscal year widened by 12.1 percent to Rs 111.80 billion, as the country´s imports exceeded exports. Between mid-July and mid-November, Nepal´s imports grew 11.8 percent to Rs 135.49 billion compared to imports worth Rs 121.17 billion recorded during the same period in the last fiscal year.
However, imports from India increased by only 4.2 percent this fiscal year, compared to a rise of 27.8 percent recorded in the last fiscal year.
On the other hand, imports from other countries increased by 27.9 percent in contrast to a drop of 26.7 percent witnessed in the last fiscal year.
Meanwhile, the country´s exports rose by 10.7 percent to Rs 23.69 billion, compared with exports of Rs 21.41 billion reported during the corresponding period last fiscal year.
Countrywise, exports to India - Nepal´s largest trading partner - went up by 14.6 percent this fiscal year as against last year´s hike of 10.2 percent. “This was mainly because of rise in the exports of zinc sheet, textiles, cardamom, wire and GI pipes, among others,” the NRB report says.
Similarly, exports to other countries increased by four percent mainly because of rise in exports of woolen carpet, pashmina, readymade garments, tea, Nepali paper and Nepali paper products.
Inflation
Consumer prices went up 8.5 percent during one month period between mid-October and mid-November as prices of food, beverage and clothing items went up.
According to the NRB report, prices of vegetables surged 29.6 percent during the month, while prices of fruits went up by 24.2 percent. Similarly, prices of clothes and footwear increased by 15.2 percent during the review period, while transport costs went up by 13.4 percent.
However, prices of spices, which had increased by a highest rate of 34.9 percent last fiscal year, went down 9 percent during the review period.
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