The country received Rs 21.87 billion in workers´ remittances during the month, which is a whopping 23 percent growth over what was received during the same month last year, shows the latest macro-economic report that Nepal Rastra Bank (NRB) released on Friday.[break]
Likewise, total exports during the month stood at Rs 6.07 billion, which is also about a billion rupee higher than what was recorded in the same period last year. Imports, on the other hand, grew by a nominal rate of 7.2 percent to Rs 32.69 billion.
As a result, country´s trade deficit stood at Rs 26.62 billion, which is a rise of just 5 percent over trade deficit witnessed in the same period last year. The central bank attributed low growth of trade deficit to substantial rise in exports of readymade garment and pashmina - country´s two major exportable commodities -- and continued tightening of imports.
Moreover, inflation moderated to 7.7 percent in mid-August 2011, a figure which indicates that consumers that braved almost 10 percent inflation last year found some respite during the month.
The central bank attributed the situation to low rise in prices of food and beverages. During the month, the prices of food and beverage increased by 9.9 percent, whereas in the same period last year, they had soared by 12.5 percent. Likewise, prices of non-food and services too increased by just 5.8 percent, compared to 7 percent rise recorded in the same month last year.
Analysis of inflation data shows that consumers, however, suffered from sharp rise (39.3 percent) in the prices of vegetables. Likewise, prices of fruits and ghee and oil increased by 26.7 percent and 9.3 percent respectively.
However, the prices of cereals and their products, increased by 1.2 percent during the period, bringing some relief to consumers.
The NRB report shows that country´s gross foreign exchange reserves increased by 4.3 percent to Rs 283.77 billion in mid-August 2011. It was Rs 272.10 billion in mid-July 2011. The reserve is sufficient for financing merchandise and service imports of 7.6 months.
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