The aggregate economic outlook has been stable in the first quarter of the current fiscal year (FY).
The monetary policy review of the first quarter by the Nepal Rastra Bank (NRB) showed that the overall economy witnessed resiliency through stress was seen in the external sector and liquidity position.
The review report revealed that the weighted average production and business activities in the review period of the first quarter rose to 74.7 per cent up from 50.5 per cent of mid-December 2020.
The indices of the review showed that production and business activities in the electricity, gas and water depicted a record high 92.5 per cent revival while business in the hotels and restaurants remained at 57.2 per cent.
In the review period, the external sector remained at a stressful position. The review showed that trade deficit went up by 58.3 per cent which remained at Rs. 413.47 billion. Subsequently, the deficit of the current account recorded Rs. 151.7 billion and balance of payment deficit recorded Rs. 76.14 billion. The review stated that deficit is the consequence of the expansion of imports and shrinkage in remittance.
The review showed that massive lending in comparison to deposit mobilization created stress in the availability of liquidity in the bank and financial institutions (BFIs). The review showed that the credit mobilization increased by 7.7 per cent to Rs. 4399.84 billion while deposits rose by 1.2 per cent to Rs. 4718.83 billion.
Source : TRN,
