Kathmandu, 25 Aug: The economy is gradually picking up pace. Indicators have shown that the economy, which has been suffering from external problems such as the impact of the global economy’s recession and internal economic slack due to external circumstances such as Corona and the Russia-Ukraine war, is improving.Â
The economy has expanded by about one percent, while the average annual inflation has decreased. Similarly, the balance of payments position has increased to a surplus of about 95 billion rupees. Exports have made a leap in import-export trade. Exports decreased by 3.0 percent in the previous fiscal year, but increased by 81.8 percent.
The total merchandise trade deficit, which decreased by 1.0 percent in the previous year, increased by 6.0 percent last year to reach 1527.9 billion. The import-export ratio was 15.4 percent, compared to 9.6 percent in the previous year.Â
According to the Economic and Financial Situation Report for the fiscal year 2081/82(2024/0245) issued by Nepal Rastra Bank, economic growth has reached 4.61 percent due to improvement in various indicators of the economy and increased economic activity. The economic growth rate in the previous fiscal year 2080/81(2023/2024) Â was 3.67 percent.
Nepal Rastra Bank has projected a new economic growth rate based on data from the National Statistics Office. Earlier, the economic growth rate in the fiscal year 2081/82 was estimated at 4.0 percent. According to the central bank, the growth in the agriculture sector is estimated at 3.28 percent, the growth in the industry sector at 4.53 percent, and the growth in the service sector at 4.21 percent.
The share of agriculture, industry and services sectors in the GDP is 25.16 percent, 12.83 percent and 62.01 percent respectively. Gross domestic savings is 6.55 percent of the GDP and the ratio of gross fixed capital formation and gross national savings to GDP is 24.07 percent and 36.24 percent respectively, the review states.
Inflation decreased
The annual average consumer inflation, which was 5.44 percent in the previous fiscal year, has decreased to 4.06 percent in the last fiscal year. The annual point consumer inflation has also decreased to 2.20 percent in June 20245, from 3.57 percent in June of the previous fiscal year.Â
In the fiscal year 2081/82, the price increase of the vegetable subgroup under the food and beverage group was the highest at 10.71 percent. This was followed by the price increase of ghee and oil by 8.72 percent, pulses and legumes by 7.90 percent, and food and food products by 6.13 percent. The price index of the spices subgroup decreased by 2.62 percent and that of fish and meat by 0.34 percent.
Under the non-food and services group, the price increase of the miscellaneous goods and services subgroup was 9.39 percent, that of clothing and footwear was 6.09 percent, that of alcoholic beverages was 5.65 percent, that of furnishings and household appliances was 4.78 percent, and that of tobacco products was 4.37 percent.
The annual average consumer inflation of the food and beverage group was 4.69 percent in the last fiscal year, compared to 6.47 percent in the previous fiscal year.  The annual average consumer inflation of the non-food and services group was 4.64 percent in the previous fiscal year, but has decreased to 3.71 percent in the last fiscal year. In the fiscal year 2081/82, the annual average consumer price index of the rural area increased by 4.40 percent and that of the urban area by 3.94 percent.
Remittance inflow
In the fiscal year 2081/82(2024/20245), remittance inflow increased by 19.2 percent to reach an all-time high of Rs. 1,723.27 billion. The previous year, this increase was 16.5 percent. It reached Rs. 189.11 billion in June 2025, which was Rs. 117.78 billion in June last year. Remittance inflow in US dollars increased by 16.3 percent to reach Rs. 12.64 billion. The previous year, such inflow had increased by 14.5 percent. Net secondary income (cash transfer) reached Rs. 1,874.3 billion in the review year. The previous year, such income was Rs. 1,571.24 billion.
In the fiscal year 2081/82, the number of Nepalis who obtained final labor permits (institutional and individual-new) for foreign employment was 505,957 and the number of those who obtained re-labor permits was 333,309.Â
Strong balance sheet position
During the review period, the balance of payments position was in surplus by Rs 594.54 billion. The previous year, the balance of payments position was in surplus by Rs 502.49 billion.
Current Account The current account was in surplus by Rs. 221.71 billion in the previous year, but is in surplus by Rs. 409.20 billion in the last fiscal year. In US dollars, the current account, which was in surplus by Rs. 1.67 billion in the previous year, is in surplus by Rs. 3.10 billion in the review year.  The balance of payments position was in surplus by Rs. 502.49 billion in the previous year, but is in surplus by Rs. 594.54 billion in the review year.Â
Exports increased
Total merchandise exports increased by 81.8 percent in the fiscal year 2081/82 to Rs 277.3 billion. The previous year, such exports had decreased by 3.0 percent. On the basis of destination, exports to India, China and other countries increased by 117.8 percent, 1.6 percent and 6.7 percent respectively. On the basis of commodity basis, exports of soybean oil, polyester yarn, jute goods, tea, shoes, slippers and other items increased, while palm oil,Â
Exports of goods including zinc sheets, juice, ginger, ready-made garments have decreased. Total imports of goods increased by 13.3 percent in the fiscal year 2081/82 to Rs. 1,804.12 billion. There  was a 1.2 percent decrease in such imports the previous year.Â
Based on the country of import, imports from India, China and other countries have increased by 7.5 percent, 14.2 percent and 31.7 percent respectively. On a commodity basis, imports of soybean crude oil, transport equipment, vehicles and spare parts, rice/paddy, edible oil, sponge iron and other items have increased. Imports of petroleum products, aircraft spare parts, gold, chemical fertilizers, and electrical equipment have decreased.
Foreign exchange reserves increased
According to the central bank, total foreign exchange reserves, which were worth Rs. 2,041.1 billion in 2081, increased by 31.2 percent to Rs. 2,677.68 billion in 2082. In US dollars, such reserves increased by 27.7 percent to Rs. 19.5 billion in mid-Ashar 2082, from Rs. 15.27 billion in mid-Ashar 2081.
Based on imports for the fiscal year 2081/82, the foreign exchange reserves of the banking sector are sufficient to cover 18.2 months of goods imports and 15.4 months of goods and services imports, according to Nepal Rastra Bank.Â
As of mid-July 2025, the country’s foreign assets were 2929 billion 690 million rupees and liabilities were 2146 billion 430 million rupees. As a result, it is stated that the net foreign assets and liabilities position was in surplus by 783 billion 260 million rupees. As of mid-July 2024, the net foreign assets and liabilities position was in surplus by 305 billion 840 million rupees. Â
