Nepal Rastra Bank has released economic data covering the first ten months of the current fiscal year 2024/25. The report shows improvements in many areas, including remittance, trade, and foreign exchange reserves.
Inflation and Prices:
The overall inflation rate in Nepal dropped to 2.77% in mid-May 2025, down from 4.40% a year ago. Wholesale prices also rose more slowly compared to last year. For example, the cost of daily goods went up by about 10.89%, while prices for construction materials and equipment increased only slightly.
Imports and Exports:
Exports of Nepali goods saw a strong rise of 72.7%, reaching Rs. 217.91 billion. Exports to India more than doubled. Major products like soybean oil and tea saw increases, but exports of palm oil and clothing went down.
Imports grew by 13.1%, reaching Rs. 1474.19 billion. Imports from India, China, and other countries rose, especially items like rice, vehicles, and transport equipment. However, imports of petroleum, gold, and fertilizers decreased.
As a result, Nepal’s trade deficit increased by 6.7%, although the ratio of exports to imports improved from 9.7% to 14.8%.
Remittances and Services:
Money sent home by Nepalis working abroad rose by 13.2%, reaching Rs. 1356.61 billion. Between mid-April to mid-May alone, remittance inflows hit Rs. 165.30 billion—up from Rs. 115.99 billion during the same period last year.
Despite this, the country faced a service trade deficit of Rs. 86.53 billion, mainly due to higher spending on services abroad.
Foreign Reserves and Currency Exchange:
Nepal’s foreign exchange reserves increased by 23.1%, now standing at Rs. 2512.95 billion (USD 18.40 billion). This amount is enough to pay for about 17.4 months of goods imports.
However, the value of the Nepali rupee fell by 2.11% against the US dollar. One dollar now buys Rs. 136.24, compared to Rs. 133.36 ten months ago.
Oil and Gold Prices:
Global oil prices dropped by 20.76%, but gold became more expensive, increasing by 36.19%. A barrel of crude oil now costs $65.91, and an ounce of gold costs $3191.95.
Government Budget and Revenue:
The Government of Nepal spent Rs. 1157.89 billion so far this year. Of this, Rs. 773.23 billion was used for regular expenses, Rs. 120.38 billion for development projects, and Rs. 264.29 billion for other financial purposes.
Revenue collection reached Rs. 922.43 billion, mainly from taxes (Rs. 828.94 billion).
Banking and Finance:
Deposits in banks rose by 6.2% (Rs. 399.81 billion), and credit to the private sector grew by 7.3% (Rs. 368.68 billion).
Interest rates have fallen compared to last year. Commercial banks now have an average base rate of 6.17%, down from 8.34% a year ago.
Balance of Payments (BOP):
Nepal recorded a positive balance of payments, with a surplus of Rs. 438.52 billion (USD 3.23 billion), showing that the country earned more from foreign sources than it spent abroad.
