According to the latest macroeconomic update by Nepal’s central bank, the country is witnessing a steady economic recovery. Remittance inflows grew by 21.2% during FY22-23 contrasting with a 4.8% drop in the previous fiscal year. The current account deficit significantly declined to 72.16 bln Nepalese rupees from 623.38 bln in the prior year. The trade deficit also declined by 15.5% during the same period. Meanwhile, Gross FX reserves rose by 23.1%, reaching USD 11.73 billion in mid-July 2023, up from USD 9.54 bln a year earlier, covering around ten months of imports.