Remittance flow rises to Rs 490.95 billion
KATHMANDU, July 18: Nepal mobilized total remittance of Rs 490.95 billion in the first 11 months of 2013/14 - a rise of 26.4 percent compared to figures of the same period of 2012/13.
The macro-economic situation report for the first eleven months of 2013/14 unveiled by the Nepal Rastra Bank (NRB) on Friday shows workers remittance flow increased by 12.2 percent in US dollar terms.
“Remittance flow decreased by a marginal 0.4 percent from the end of May, compared to the value of previous months, due to appreciation of Nepali currency vis-à-vis US dollar,” the report states.
Workers tend to send more remittance when US dollar appreciates to reap benefits from high exchange rate of US dollar with Nepali currency.
NRB´s data shows growth in remittance flow peaked in August last year.
Remittance is the major factor behind the country´s high Balance of Payment (BOP) surplus, according to the report, “The current account posted surplus of Rs 77.84 billion in the review period compared to surplus of Rs 41.56 billion in the corresponding period of 2012/13.”
BoP surplus was recorded at Rs 109.56 billion in the review period.
Total remittance mobilized in the first 11 months of 2013/14 is equal to 25.83 percent of the Gross Domestic Product (GDP). In 2013, the World Bank ranked Nepal in the third position in the world in terms of the contribution of remittance to GDP.
Remittance flow in the review period surpassed country´s total remittance income in 2012/13 by Rs 56.37 billion. In 2012/13, the government had mobilized Rs 434.58 billion in remittance.
INFLATION AT 9.5 PERCENT
Consumer Price Index (CPI)-based inflation was recorded at 9.5 percent in the review period, compared to 8.2 percent in the corresponding period of last year. According to the report, high inflation in vegetable products propelled the inflation. “Price index of vegetables products sub-group increased by the highest rate of 27.5 percent during the review period in contrast to a decrease of 9.1 percent in the corresponding period of the previous year,” the report states. Similarly, price index of hard drinks, tobacco products and meat products went up by 25.5, 25.3 and 16.1 percent, respectively. Price of non-food products also increased by around 10 percent.
Price indices in Tarai increased by 10.1 percent, followed by Kathmandu Valley and hilly region with 9.7 percent and 8.1 percent, respectively.
However, the wholesale price index stood at 9.1 percent.
TRADE DEFICIT AT RS 563.97 BILLION
Country´s total trade deficit during 11 months stood at Rs 563.97 billion.
The data is different from the data unveiled by Trade and Export Promotion Center (TEPC) last week. TEPC had stated that the country suffered trade deficit of Rs 567.17 billion in the 11-month period.
The country imported goods and services of Rs 645.70 billion during the review period, according to NRB report. TEPC data had showed that total during the 11-month stood at Rs 648.99 billion.
Source: Republica
