Recovering Economy Raises New Hopes

Nepal Rastra Bank (NRB) has made public the macroeconomic and financial report of the first six months of the current fiscal year. The report has revealed that the economy is on the road to recovery. For one thing, the balance of payment (BoP) has soared to healthy levels, hovering at a surplus of Rs. 97.10 billion in the review period compared to a deficit of Rs. 241.23 billion in the same period of the year before. Similarly, foreign exchange reserves have recovered to Rs. 1,337.29 billion in mid-January, 2023 from Rs. 1,215.80 billion in mid-July 2022 – an increase of 10 per cent. For another, the current account deficit has dramatically narrowed to Rs. 29.47 billion in the review period from Rs. 353.16 billion in the same period last year.