KATHMANDU, Jan 23 (Xinhua): The Gross Domestic Product (GDP) of Nepal is expected to increase by 3.5 per cent in the current Nepali fiscal year (July 16, 2005-July 15, 2006), an official said here today. "As against an increase in imports by 34.8 per cent last year, the import in the first four months of the current Nepali fiscal year has increased by 36.5 per cent," Krishna Bahadur Manandhar, acting governor of Nepal Rastra Bank, the central bank of Nepal, said at the press conference. Exports, which stood at 17.9 per cent last fiscal year, has depreciated by 17.2 per cent in the last four months, Manandhar noted, adding, "The percentage price rise which was 7.8 has increased by 8.5 per cent during the same period." According to a report to the public, the broad-based monetary supply has increased by 4.6 per cent from 3.3 per cent, the revenue collection has increased to 6.9 per cent from 0.6 per cent and the capital-based expenditure has decreased to 10.3 per cent from 12.4 per cent. Meanwhile, indicating tough days ahead for the frail economy of Nepal, the rate of inflation during the first four months of the current fiscal year scaled up to 8.5 per cent compared to 2.7 per cent recorded during same period last year. A monthly economic report released today by Nepal Rastra Bank, the central bank of the country, blamed upward revision made in the administrated petroleum products in Sept. 2005 and unexpected rise in prices of agro-products for the sharp rise in inflation. The trade deficit, during the period, widened by an alarming 51 per cent to almost 36 billion Nepali rupees (514 million US dollars) , thanks to a sharp rise in imports compared to exports.
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