The report made public on Tuesday attributes the expansion to increase in consumption, which was fueled by strong remittance inflow, and rise in exports due to dramatic rise in trade of agricultural products to the regional markets.
Mainly the export of pulses grew strongly during the period and totaled Rs 5.11 billion, which was one of the main reasons behind encouraging double-digit rise in outbound trade. In the past, export of pulses barely used to stand at Rs 1 billion per annum.
Statistics also shows 15 percent rise in export of woolen carpet and 1.4 percent rise in the export of readymade garment -- the two leading export commodities. However, concerned exporters caution that the figure expressed in Nepali rupee is deceptive because it does not take into account currency devaluation. Nepali rupee had depreciated by more than 17 percent during the period.
Nonetheless, the central bank report cites that the country´s exports expanded by 15 percent to Rs 61.21 billion during the period. Imports too soared by over 26 percent and totaled Rs 253.52 billion.
In the total foreign trade, share of India, the largest trading partner, dropped to 58.3 percent from well over 64 percent recorded in the same period last year.
Owing to sharp growth in imports compared to exports, country´s trade deficit widened by 30 percent and valued at Rs 192.30 billion. Trade deficit with India alone crossed over Rs 107 billion.
Inflow of workers´ remittance, the mainstay of Nepali economy, touched Rs 188.88 billion, which was a growth of 51 percent over the figure in the same period last year.
While the increase in remittance inflow buoyed consumption and construction, salary and wage of Nepalis too rose by 21.5 percent during the period. As a result, inflation remained high at 12.3 percent in mid-June 2009.
The central bank has attributed higher inflation to the rise in the prices of food and beverages items (which soared by 19 percent). The prices of non-food and service items also had increased by 5.1 percent during the month.
Of the food items, the prices of sugar and sugar related products increased by a whopping 62.3 percent, while the prices of vegetables and fruits increased by 55.5 percent. Similarly, the prices of meat, fish and eggs as well as pulses increased by 29.8 percent and 27.7 percent respectively.
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