Hey
readers! Today in this post I will be briefly updating ourselves with
the recent Nepal’s economic growth and Nepal's development status.
Nepal's Economy
Nepal is one of the least developed countries in the world with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances and foreign aid. The main sector of the economy is agriculture, which employs over 70 percent of the population and accounts for 33 percent of GDP. As Nepal is home to the highest mountains in the world, tourism has been steadily growing in importance and is an important source of revenue. Also, the country has been working on exploiting hydroelectric power with an estimated 42,000 MW of commercially feasible capacity. Nepal’s industrial activity mainly focuses and involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain but lacks in other sectors like technology, construction, energy producing, chemical, and many more.
Now talking about economic development in Nepal, economic
development in Nepal has been complicated and affected by the
constant change in political scenarios,
natural occurrences and
foreign disputes throughout many years. From
1993 until 2016, Nepal’s growth rate averaged 4.38
percent, reaching an all time high of 8.60 percent in 1993 and a
record low of 0.10 percent in 2001.Since then, Nepal had steadily
economy growth during the height of the conflict and yielded
budget surpluses in 2013-14. However, after a devastating earthquake
in April 25, 2015 followed by trade disruptions, the country
registered the weakest growth in 14 years during FY(Fiscal
Year) 2016. However, economic activity
is recovering in Nepal since 2015-16. Nepal’s rice
production has increased with a record high of 5.2
million tons from 4.2 million tons a year ago. Most of the
hydropower projects which were delayed by the earthquakes
and trade disruptions, have came back
on their tracks. Nepal’s transport and
wholesale and retail trade were stabilized. Tourism is
also improving because of the arrival the
September–December 2016 tourist season. Additionally, Nepalese
government has focused of reforms in basic requirements of its
civilian such as electricity and health with notable impact in the
electricity sector with the elimination of power cuts in several
major cities across Nepal. According to the first estimate by
the Central Bureau of Statistics (CBS), Nepal’s growth has reached
7.5 percent in FY 2017 (at market prices) which is the highest growth
rate since 1994.
Although
we have so far known many reforms and growths in Nepal since the
following 2 challenging years, Nepal is still expected be
affected by uncertainty stemming from transition to the federal
structure, several elections and the possibility of further slowdown
in remittances. The fiscal deficit is also expected to increase
with the increase of import growth substantially in FY 2018. There
are an increasing number of downside risk with domestic risks
predominating over others such as end of the term of
the current government, implementation of a new federal
structure, slow pace of earthquake reconstructions, increasing
rate of immigration, lower rate of remittances and many more.
Note:I
don't take credit for the above images.The information here are
prepared by me by using various sources.I want to apologize to all
the reader for not being about to present some informative images and
charts for detailed information.
Thank
you for visiting!!
Data
Source:www.worldbank.org
Recent Nepal's economic growth and development status
Reviewed by Twilight's Dawn
on
August 24, 2017
Rating:
Reviewed by Twilight's Dawn
on
August 24, 2017
Rating:
No comments: