Everything you need to know about Nepal’s economy: Record reserves, rising inflation and weak credit growth
Summary
Nepal's economy shows a mixed picture with record foreign exchange reserves and a surge in remittances, but rising inflation and widening trade deficit pose challenges.
Key Points
- Nepal's foreign exchange reserves rose by 40.3 percent to Rs. 3.76 trillion in eleven months to mid-June 2026.
- Remittance inflows surged 38.2 percent to Rs. 2.12 trillion despite fewer new foreign employment approvals.
- Headline inflation accelerated to 5.22 percent year-on-year driven by food, beverage, and transportation costs.
- Trade deficit widened 15.7 percent to Rs. 1.62 trillion as imports grew faster than exports, particularly from China and India.
