By Our Reporter
The overall balance of payment (BoP) of the country has widened further during the first 10 months of current fiscal year to Rs. 18.93 billion.
The BoP deficit was Rs. 14.93 in the first nine months of the current fiscal year while it was in surplus of 53.81 billion during the first 10 months of previous fiscal year.
The increase in the BoP deficit is due to the widening current account deficit which stood Rs. 191.02 billion in the review period. It was Rs. 7.57 billion in the same period of the previous year.
The elevated level of imports widened the current account deficits, a report on current macroeconmic situation of the country published by Nepal Rastra Bank stated.
During the first 10 months of 2017/18, merchandise export increased by 9.2 per cent to Rs. 66.65 billion compared to an increase of 9.8 per cent in the same period the previous year.
The growth in merchandise imports remained elevated at 21.9 per cent to Rs. 985.83 billion in the review period compared to an increase of 34.9 per cent in the same period the previous year.
As a consequence of skyrocketing level of import compared to export, total trade deficit widened by 22.9 per cent to Rs. 919.18 billion in the first 10 months of 2017/18.
The export-import ratio declined to 6.8 per cent in the review period from 7.5 per cent in the corresponding period the previous year.
The workers’ remittances increased by 7 per cent to Rs. 606.68 billion in the review period compared to a rise of 5.2 per cent in the same period a year ago.
However, net transfer receipts decreased 0.1 per cent to Rs. 692.23 billion in the review period. Such receipts had increased by 10.3 per cent in the same period last year.
In the review period, the flow of foreign direct investment (FDI) amounted to Rs. 15.51 billion compared to Rs. 11.61 billion in the corresponding period last year.
Similarly, the year on year (y-o-y) consumer price inflation which had peaked at 6 per cent in mid-March 2018 further deceleraed to 4.1 per cent in mid-May 2018 owing to fall in the prices of some essential items.
A year ago, the y-o-y consumer price inflation rate was 3.4 per cent.
Food inflation rose 3.2 per cent in mid-May 2018 from 0.2 per cent a year ago.
A surge in prices of vegetables, fruit, ghee and oil, milk products and eggs, among others, contributed to the rise in food inflation in the review period compared to corresponding period last year, a report on current macro economic situation of Nepal Rastra Bank made public today stated.
Non-food inflation has moderated to 4.8 per cent in mid-May 2018 from 6.0 per cent a year ago.
A slower growth in prices of clothes and footwear, housing and utilities, furnishing and household equipment, among others accounted for a moderation in non-food inflation in the review month.
The mountain region witnessed relatively higher rate of inflation of 6.3 per cent followed by 5.7 per cent in the hill, 4.0 per cent in the Terai and 3.3 per cent in the Kathmandu Valley.
In the corresponding period the previous year, these regions had witnessed inflation rates of 2.8 per cent, 4.0 per cent, 3.6 per cent and 1.9 per cent respectively.
Economy signals bad signs
By Our Reporter