First Business News Portal in English from Nepal
KATHMANDU: Rise in import bill and slow export growth coupled with stagnation in remittances have resulted in current account deficit of Rs 101.90 billion in the first seven months of 2020-21.
The current account remained at a deficit of Rs.101.90 billion in the review period compared to a deficit of Rs.106.0 billion in the same period of previous year, as per the ‘Current Macroeconomic and Financial Situation of Nepal’ report issued by the Nepal Rastra Bank (NRB) today.
In US Dollar terms, the current account registered a deficit of 871.0 million in the review period compared to a deficit of 930.6 million in the same period of previous year.
As per the central bank’s report, merchandise exports increased 7.6 percent to Rs 69.92 billion compared to an increase of 22.4 percent in the same period of the previous year. However, merchandise imports increased by 0.01 percent to Rs 803.64 billion against a decrease of 3.6 percent a year ago.
Total trade deficit narrowed down 0.7 percent to Rs.733.73 billion in seven months of 2020-21. Such deficit had decreased 5.3 percent in the same period of the previous year. The export-import ratio increased to 8.7 percent in the review period from 8.1 percent in the same period of the previous year.
Meanwhile, remittance inflows increased 10.9 percent to Rs 567.70 billion in the review period against a decrease of 0.7 percent in the same period of the previous year.
However, balance of payments (BoP) registered a surplus of Rs 97.36 billion in the review period as compared to a surplus of Rs 21.61 billion in the same period of previous year.
The consumer price inflation stood at 2.70 percent in the seven month of 2020-21 compared to 6.87 percent a year ago. Food and beverage inflation stood at 3.02 percent whereas non-food and service inflation stood at 2.44 percent in the review month.
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