Weekly Economic Update (03 April 2024–10 April 2024)
2 min readApr 10, 2024
- World Bank predicts 3.3% growth — The World Bank has forecasted modest economic growth of 3.3% for the fiscal year 2023/24 ending mid-July citing rise in tourist arrivals, expanded financial and insurance activities despite contraction in retail and wholesale trade. (Source: https://kathmandupost.com/money/2024/04/03/world-bank-predicts-modest-growth-for-nepal-s-economy and https://documents1.worldbank.org/curated/en/099040124010511219/pdf/P5009101408e8a09d1aa2d1d52cd32db742.pdf)
- Inflation touched 30 months low — As per a recent report published by Nepal Rastra Bank, inflation has reached 4.82% in mid-March 2024, lowest in 30 months compared to 7.44% last year. (Source: https://kathmandupost.com/money/2024/04/08/inflation-at-30-month-low-yet-food-prices-refuse-to-come-down)
- IBN approves four energy projects — Investment Board of Nepal has approved investment of Rs. 99.18 billion for four energy projects which includes three hydroelectricity projects of total 139.2 MW and a 250 MW solar energy project. (Source: https://kathmandupost.com/money/2024/04/05/investment-board-approves-rs99-18-billion-investment-for-energy-projects)
- PDMO to manage domestic debts — Issuance and management of domestic debts (treasury bills and government bonds) will be handled by the Public Debt Management Office (PDMO) exclusively. The monetary management division of Nepal Rastra Bank was formerly responsible for issuing domestic debt due to lack of separate entity (Source: https://theannapurnaexpress.com/story/48236/)
- Projects for Investment Summit Downsized — Among 132 preliminary projects received from private sectors, local level and federal ministries, departments and industrial sectors, only 125 projects will be exhibited in the third investment summit. These include projects ranging from highways, tunnels, hydropower, tourism, and cable cars (Source: https://www.newbusinessage.com/Articles/view/20665)
- Cases at Debt Recovery Tribunal rose — Bank and Financial Institutions have filed 342 cases at Debt Recovery Tribunal after facing difficulties to recover the bad loan amidst declining economic activities as of mid-March 2024. The number of cases at the tribunal was only 200 last fiscal year. (Source: https://www.newbusinessage.com/Articles/view/20683)
- Industries suffer 12 hours black-outs — Nepali industries have started suffering from unannounced 12 hours load-shedding although India has renewed the electricity trade agreement on condition to provide electricity during day time only. This leaves NEA with unmatched demand for electricity during peak hours. (Source: https://www.newbusinessage.com/Articles/view/20686)
- Mutual customs assistance proposed — Nepal proposed establishing a customs mutual assistance agreement with India to streamline trade processes between the two nations. The aim is to decrease customs revenue leakages and aid in investigating customs offenses. (Source: https://kathmandupost.com/money/2024/04/07/nepal-proposes-mutual-customs-assistance-with-india)
- NOC to establish a chemical fertilizer factory — Nepal Oil Corporation is preparing to establish a chemical fertilizer facility in the country in PPP model to reduce fertilizer imports. Nepal imported Rs. 40.5 billion worth of chemical fertilizers last fiscal year. (Source: https://myrepublica.nagariknetwork.com/news/noc-plans-chemical-fertilizer-factory-to-reduce-import-dependency/)
- Trade deficit decreased by 2.5% — In the initial eight months of the fiscal year, Nepal’s trade deficit has amounted to Rs. 929.61 billion, marking a 2.5% reduction compared to the corresponding period in the previous fiscal year. The total value of merchandise imports for the nation reached Rs. 1030.22 billion during this period. (Source: https://myrepublica.nagariknetwork.com/news/nepal-s-trade-deficit-soars-to-rs-929-billion/)
