Kathmandu, Jan. 1 -- A day after the private sector said business confidence has sunk to a historic low, Nepal Rastra Bank struck a more optimistic note, saying the economy has begun to show gradual signs of recovery following recent political unrest.

In its economic outlook released on Thursday, the central bank said that after September's deadly Gen Z protests, the newly formed government has largely maintained law and order, prioritised good governance and institutional reforms, and rolled out concessional arrangements to support reconstruction.

It has also introduced relief measures and facilities aimed at helping businesses affected by the unrest resume operations.

"These efforts have started to produce positive effects on the ove...