Nepal registered a growth of only 0.8 percent in the fiscal year 2001/2 depicting a grim economic picture of the country, the Nepal Rashtra Bank said.

Inflation stood at 2.9 percent– up from 2.4 percent the previous year. Gross foreign exchange holdings of the banking system rose one percent to R.106.26 billion as of mid July compared to an increase of 12.1 percent the previous year.

Foreign exchange holdings was adequate to finance imports for one year. Exports fell 14.6 percent to Rs.47.54 billion compared to an 11.7 percent increase the previous year.