Print Edition - 2015-03-17 | MONEY
Slowdown in remittance inflow continues
Mar 16, 2015-
The external sector of the economy is showing the sign of vulnerability, with sluggish growth in remittance inflow, decreasing exports and surging imports.
According to a Nepal Rastra Bank (NRB) report released on Monday, the inflow of remittance, the largest source of import financing, increased by a mere 2.9 percent to Rs. 320.93 billion in the first seven months of the fiscal year compared to an increase of 38.6 percent in the same period of the previous year. In US dollar terms, workers’ remittances increased by 3.9 percent to $3.26 billion.
The central bank has been blaming the use of remittance in the smuggling of gold for the sluggish growth.
Merchandise exports decreased by 5.1 percent to Rs. 50.19 billion particularly due to a decrease in exports to India. According the NRB report, exports to India decreased by 9.5 percent in the review period.
Exports of cardamom, zinc sheet, jute goods, and textiles, among others fell, bringing down the country’s overall exports to southern neighbour.
Exports to China increased 13.7 percent and those to other countries rose 2.5 percent. The country’s imports surged 13.3 percent to Rs. 444.77 billion.
As a result, total trade deficit in the seven months grew 16.1 percent to Rs 394.59 billion. Inflation as measured by the consumer price index increased by 7.0 percent in mid February 2015.
The CPI-based inflation was 8.8 percent in the corresponding period of the previous fiscal year.
Published: 17-03-2015 09:35