Nepal’s Economy Grows 4.61% in FY 2024/25, Inflation at 4.94%

Kathmandu – Nepal Rastra Bank has published its annual report on the economic and financial situation for FY 2024/25 (Nepali Fiscal Year 2081/82). The report estimates the country’s economic growth at 4.61%, compared to 5.71% in the previous fiscal year.

The annual average inflation stood at 4.94%, slightly higher than last year’s 4.44%.

The balance of payments (BoP) remained positive with a surplus of Rs. 2.14 trillion, compared to only Rs. 240 billion in the previous year.

Foreign trade showed mixed outcomes. Imports rose by 13.3%, while exports increased by only 5.5%, leading to a wider trade deficit.

On the positive side, remittance inflows increased by 9.8%, reaching USD 11.5 billion during the year. In Ashad alone, remittances worth USD 1.16 billion entered Nepal.

The country’s foreign exchange reserves expanded by 9.6% to USD 11.5 billion, sufficient to cover 9.6 months of goods and services imports.

Meanwhile, money supply (M2) grew by 12.5%, compared to 9.3% in the previous year.

Deposits in banks and financial institutions rose by 9.6%, while credit to the private sector increased by 5.7% during the review year.