Sunday, May 19, 2019

Nepal posts Rs 64.68 billion BoP deficit

The outflow of money from the country has surpassed inflows by Rs 64.68 billion as the value of imports exceeded Rs 1 trillion mark, which is over 31 per cent of the country’s gross domestic product (GDP), in the first nine months of fiscal 2018-19.
The macroeconomic report of the first nine months of the current fiscal released by the central bank today revealed that the balance of payment (BoP) remained at a deficit of Rs 64.68 billion compared to a deficit of Rs 14.6 billion in the same period of the last fiscal year. “In terms of US dollar, the overall BoP recorded a deficit of $568.3 million in the nine months compared to a deficit of $144.1 million in the same period of last fiscal year.”
Nepal’s import bill increased by 21.3 per cent to Rs 1,061.63 billion against increment in exports by 16.9 per cent in the first nine months of 2018-19 creating pressure on the overall BoP situation. As a result, the Nepal’s total trade deficit has widened by 21.6 per cent to Rs 991.81 billion, the central bank statics revealed.
Likewise, the current account has also registered a deficit of Rs 204.43 billion against a deficit of Rs 172.67 billion in the same period of the last fiscal year, the report reads, adding that consumer price inflation stood at 4.4 per cent in mid-April 2019 compared to 5.3 per cent a year ago. “Food and beverage inflation stood at 2.8 per cent in mid-April 2019 compared to 4.7 per cent a year ago, whereas the non-food and service inflation stood at 5.7 per cent in mid-April 2019 compared to 5.8 per cent a year ago.”

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