Kathmandu: The first five months of the current fiscal year have showcased positive growth in most of Nepal's economic indicators, according to the central bank's report released on Thursday. The review highlights decreasing inflation, robust remittance inflows, and growth in foreign reserves.

The Nepal Rastra Bank (NRB) reported that year-on-year consumer price inflation moderated to 4.95 percent in mid-December 2023, a notable decline from 7.38 percent a year ago. Merchandise imports decreased by 3.4 percent to Rs 642.21 billion during the review period, with imports from India and other countries decreasing by 1.3 percent and 28.4 percent, respectively, while imports from China increased by 32.8 percent.

Specifically, there were increases in imports of readymade garments, M.S. wire rod, bars, and coils, electrical equipment, and textiles. On the other hand, imports of gold, crude soybean oil, crude palm oil, petroleum products, and rice/paddy decreased. The total trade deficit reduced by 3.1 percent to Rs 579 billion, indicating improvement compared to the previous year.

During the review period, remittance inflow experienced robust growth, increasing by 27.6 percent to Rs 613.25 billion. The balance of payments remained in surplus at Rs 210.59 billion in the first five months of the current fiscal year, up from Rs 45.87 billion in the same period the previous year.

The gross foreign exchange reserves exhibited a positive trend, increasing by 14.8 percent to Rs 1767.04 billion in mid-December 2023. Notably, the reserves held by the NRB increased by 15.6 percent to Rs 1556.25 billion during the same period.

The NRB's report signals encouraging economic trends, indicating resilience and positive growth in key areas of Nepal's economy.