Impressive Growth in Macroeconomic Indicators of Nepal: Increasing BOP Surplus & Remittance and Decreasing Trade Deficit

  Apekshya Dhungana, Banking Khabar. Nepal’s macroeconomic indicators like Balance of Payment (BOP), Remittance and Trade deficit have shown impressive growth in their areas. Up to first quarter of Fiscal Year 2077/78 i.e. up to Ashwin 2077, Balance of Payment (BOP) registered a surplus of Rs. 101.09 billion which is 600.55% growth in comparison to Ashwin 2076. This growth is outstanding considering the current situation where every nation’s economy is in downward trend due to the effect of Covid-19 all over the world.

The main reason for BOP surplus is slightly increase in remittance and narrowed trade deficit. Remittance inflows has increased by 12.62% to Rs. 258.86 billion in Ashwin 2077. Trade deficit has narrowed by 15.13% i.e. by Rs. 46.56 billion to Rs. 261.22 billion in Ashwin 2077 due to decrease in major imports like petroleum products, transport equipment and parts, aircraft spare parts, other machinery and parts, crude palm oil etc.

Following bar graph shows the position of Exports, Imports, Remittance, Trade Deficit and Balance of Payment (BOP) of Aswin 2077 in comparison to Ashwin 2076.

In comparison to previous month i.e. Bhadra 2077, Nepal has also achieved impressive growth in major macroeconomic indicators like Remittance and Balance of Payment.  The month wise comparison i.e. comparison of Ashwin 2077 with Bhadra 2077 is shown in following bar graph.