NEPAL’S GDP GROWTH WAS 3.9% IN FISCAL YEAR 2024 FROM 2% IN FISCAL YEAR 2023.WHICH WAS HELPED BY TOURISM ,INCREASED HYDROPOWER PRODUCTION UP BY 450 M.W AND BY AGRICULTURAL SECTOR WHICH WAS UP BY 4.3%.PRIVATE CONSUMPTION BOOSTED BY REMITTANCE INFLOWS.PUBLIC INVESTMENT REMAINED WEAK DUE TO LOW CAPITAL EXPENDITURE.REDUCTION IN IMPORTS AND HUGH REMITTANCE INFLOWS THE CUREENT ACCOUNT BALANCE,RESULTING IN SURPLUS OF 3.9%OF GDP.
NEPAL’S FISCAL DEFICIT NARROWED IN FISCAL YEAR 2024 DESPITE HEALTHY REVENUE DUE TO HIGH SPENDING IN FISCAL YEAR 2024 LOWEST IN EIGHT YEARS.
INFLATION MODERATED TO 5.4%IN FISCAL YEAR 2024 DOWN FROM 7.7%IN FISCAL YEAR 2023.BELOW NEPAL RASTRA BANK TARGET OF 6.5%.
MONETARY POLICY REMAINED CAUTIOUSLY ACCOMMODATIVE.
THE BANKING SECTOR FACED TROUBLED YEAR ON ASSETS QUALITY ,PROFITABILITY AND CAPITAL ADEQUACY.NON PERFORMING LOANS WAS RECORD HIGH WITH 3.8% BY MID JULYIN FISCAL YEAR 2024 WHICH LED TO A 29.5% INCREASE IN LOAN-LOSS PROVISIONS ,WHICH REDUCED NET PROFIT BY 8.8%IN FISCAL YEAR 2024.
SOURCE
WORLD BANK.