Weekly Economic Updates (19 September 2024–26 September 2024)
- NRB Revises Consumer Price Index Measures
Nepal Rastra Bank (NRB) has updated its Consumer Price Index (CPI) estimation, using FY 2023/24 AD as the new base year after nine years. It now considers 525 goods and services across 77 districts, adjusting weights for food and non-food items. The CPI will be published for the first time according to Nepal’s federal structure, addressing past criticism of inflation estimation inaccuracies.
(Source: https://myrepublica.nagariknetwork.com/news/nrb-adopting-new-measures-to-estimate-consumer-price-index/)
2. Exports Worth NPR 5.26 Billion from Birgunj
As of the end of Bhadra this fiscal year, Birgunj Customs Office exported goods worth NPR 5.26 billion (USD 39.37 million), a slight decrease from NPR 5.29 billion (USD 39.61 million) in the previous fiscal year. Notable exports included 6.95 million kg of pine (USD 3.71 million) and 1.45 million kg of synthetic yarn (USD 2.49 million), with the latter increasing. Juice and jam exports reached NPR 1.29 billion (USD 9.63 million), up by 5.11%.
(Source: https://ekantipur.com/business/2024/09/26/goods-worth-five-billion-26-million-rupees-were-exported-from-birganj-56-52.html )
3. Tea exports to India Increased by 52%
Tea exports from Mechi Customs surged by 52% in the first two months of FY 2024/25 (2081/82 BS), with 4,412 metric tons valued at NPR 1.13 billion exported. This marks a significant increase compared to 2,902 metric tons exported during the same period last year.
(Source: https://english.onlinekhabar.com/tea-export-to-india-increases-by-52-per-cent.html)
4. ADB Dials Up Nepal’s Economic Growth Forecast
The Asian Development Bank (ADB) has revised Nepal’s economic growth forecast upward for the current fiscal year beginning mid-July. This is based on projected agricultural and electricity output growth and buoyant tourist arrivals. The multilateral funding agency said Nepal’s economy might grow by 4.9% in the FY 2024/25 AD, 0.1% more than April’s forecast. However, the growth is way lower than the government’s 6% target.
(Source: https://kathmandupost.com/money/2024/09/26/adb-dials-up-nepal-s-economic-growth-forecast)
5. IMF Suggests Government for Continuous Vigilance of Nepali Banks
The IMF has urged Nepal to monitor its banks as the country recovers from an economic slowdown. Following a September visit by an IMF team led by Sarwat Jahan, the organization highlighted macroeconomic developments and the implementation of the Extended Credit Facility program.
(Source: https://myrepublica.nagariknetwork.com/news/imf-suggests-govt-for-continuous-vigilance-of-nepali-banks-while-they-struggle-with-elevated-non-performing-loans/)
6. Nepal Imports EVs Worth NPR 3.82 Billion in Two Months of FY 2024/25 AD
Nepal imported 1,602 electric vehicles (EVs) worth NPR 3.82 billion in the first two months of the FY 2024/25 AD, generating NPR 2.31 billion in revenue. EV imports surged by 78% compared to the same period last year. Most imported EVs were from China, with a rise attributed to the NADA Auto Show and upcoming festivals. The majority were cars, jeeps, and vans, with significant demand expected for Dashain and Tihar.
(Source: https://myrepublica.nagariknetwork.com/news/around-1-600-evs-worth-about-rs-3-82-billion-imported-within-two-months/)
7. USAID Announces USD 21 Million Project to Help Nepali Farmers
USAID and the Nepalese government announced a USD 21 million agricultural direct financing project to boost food security. The event also introduced the US government’s five-year Global Food Security Strategy Nepal Country Plan 2024–2028, aiming to improve nutrition and food security.
(Source: https://kathmandupost.com/money/2024/09/25/us-announces-21-million-project-to-help-nepali-farmers)
8. Nepali Traders Hike Food Prices Riding the Festive Wave
As the festive season nears, prices of essentials like rice, oil, and lentils have risen. Despite stable Indian prices, opportunistic traders in Nepal increased costs, citing factors like India’s import tax hike, and exploiting poor market monitoring.
(Source: https://kathmandupost.com/money/2024/09/24/nepali-traders-hike-food-prices-riding-the-festive-wave)
9. Agriculture Investment Decade Plans Delayed
The government of Nepal announced the Agriculture Investment Decade in the current fiscal year, yet it has not finalized the objectives or activities. The Ministry of Agriculture is currently preparing a concept paper, aiming for completion by 2025.
(Source: https://www.abhiyandaily.com/article/krssi-dshkmaa-grne-kaamko-ttungo-laagn-smy-laagne)
10. 102MW Middle Bhotekoshi Hydropower Project Nears Completion After Years of Delays
The long-delayed 102MW Middle Bhotekoshi Hydropower Project in Sindhupalchok, Nepal, is nearing completion, with electricity generation expected within a month. The project is expected to generate 542.2 million units of electricity annually, contributing NPR 2.8 billion in revenue. (Source: https://kathmandupost.com/money/2024/09/23/102mw-middle-bhotekoshi-project)
