Weekly Economic Update (28 April 2023 to 4 May 2023)
1. Nepal in Recession — Nepal enters its first recession in six decades. GDP in Q2 of 2023 to be -0.73, negative for three quarters in a row.
(Source: https://kathmandupost.com/money/2023/04/30/nepal-plunges-into-its-first-recession-in-six-decades#:~:text=The%20negative%20performance%20of%20the,to%20mid%2DOctober%202022).
2. Nepal Economic Growth Projection 2.16% — National Statistics Office (NSO) has projected the growth rate of Nepal at 2.16% in the basic price. Annual growth rate at consumer price 1.86%.
(Source: https://thehimalayantimes.com/business/nepals-economy-projected-to-grow-216pc)
3. Trade Deficit reduced by 17.06% — Nepal imported goods worth over NPR 1,201 billion in the review period and exports from the country stood at NPR 118 billion down 18.08% and 26.34% compared to the imports and exports respectively over the same period last year.
(Source: https://thehimalayantimes.com/business/trade-deficit-narrows-1706-per-cent)
4. Nepal’s Per Capita Income Remains the Same — The per capita income of Nepali Citizens stays at USD1399 same as last fiscal year as disclosed by the National Statistics Office (NSO). (Source: https://www.bizshala.com/story/नेपालीको-5)
5. The ceiling for the exchange of US dollars raised — NRB-licensed money exchangers are allowed to provide exchange services of up to $5000 to Nepali citizens up from USD500. However, the revised provision is not for the amount received as gifts and tips from foreign friends and clients.
(Source: https://thehimalayantimes.com/business/nrb-revises-ceiling-for-exchange-of-us-dollars)
6. Nepali Trucks Halted at Tatopani Border — New rules by Chinese officials say exports are to be transferred to Chinese trucks for further journey. Travelers are still not allowed through borders.
(Source: https://kathmandupost.com/money/2023/05/01/nepali-trucks-being-stopped-at-tatopani-border-point#:~:text=Chinese%20authorities%20have%20issued%20a,points%20in%20Tibet%2C%20officials%20said.)
7. Reduced import prices for petrol and diesel — The new import prices sent by Indian Oil Corporation (IOC) reduced the price of petrol by NPR 4.33 per liter and diesel by NPR 4.11 per liter.
8. IMF Approves Second Installment of Extended Credit to Nepal — The International Monetary Fund (IMF) will be providing USD 52.80 million under its Extended Credit Facility (ECF) to Nepal. Nepal has already received $ 110 million as the first installment.
9. Budget Cuts up to 42% in Health — The finance ministry has fixed a ceiling that is 42 percent lower than the total budget of the health ministry for the current fiscal year. Maternal health experts warn of serious repercussions from the abrupt budget cuts in healthcare services.
10. QR Code Transactions Tripled in a Year — The QR code transactions in the last year increased to 6.25 million from 2.38 million transactions. The transaction amount has also increased 3-fold along with the number of transactions.
(Source: https://myrepublica.nagariknetwork.com/news/transactions-through-qr-codes-tripled-in-one-year/)
