Macroeconomic Summary of First 6 Months: Inflation at 2.42 %, Remittances Rises by 39.1%, Foreign Currency Enough to Cover 18.1 Months Import
Summary
Nepal Rastra Bank reports inflation at 2.42%, a 39.1% rise in remittances, and foreign exchange reserves sufficient to cover 18.1 months of imports in the first half of FY 2025/26.
Key Points
- Inflation in Nepal stood at 2.42% year-on-year in mid-January 2026, down from 5.41% a year ago.
- Remittance inflows increased by 39.1% to Rs.1062.93 billion in the first six months of FY 2025/26.
- Gross foreign exchange reserves rose 21.1% to Rs.3242.45 billion, sufficient to cover 18.1 months of import of goods and services.
- Merchandise exports grew by 43.8% while imports increased by 14.2%, resulting in a trade deficit of Rs.797.00 billion in the review period.
