With depleted forex reserves, rising imports, and soaring balance of payments imbalances, many fear that Nepal is heading towards a full-blown economic crisis.
eaching a high of 6.1 percent in 2001 and a low of 0.1 percent in 2002.
Similarly, during 2010-2021, the annual average growth rate was 4.3 percent, a slight or marginal increase by 0.2 percentage points over the previous period, reaching a high of 9 percent in 2017 and a low of -2.4 percent in 2020. This is barely enough to feed the population, which is growing at the rate of nearly 2 per cent per year.If such economic woes continue, hunger, malnutrition rife, employment insecurity, social insecurity, health crisis and loss of livelihood will become a routine occurrence.
- A Ray of Hope :-
Reports suggest the economic situation in Nepal is not as alarming as it is perceived to be. As far as the foreign exchange reserves is concerned, Nepal is in a far more better condition than Pakistan and Sri Lanka.
During the 40th plenary of the 76th session of the United Nations General Assembly (UNGA), Nepal qualified to graduate from the LDC category to a developing country. Despite encouraging signs of recovery, Nepal will need corrective measures to keep the economy firm.
The economy in Nepal which was on the path of recovery following the Covid-19 pandemic has further been hit by the Ukraine crisis.
The International Monetary Fund (IMF) noted that the global economic impact of the war in Ukraine is increasing the existing vulnerabilities and impacting Nepal’s import-reliant economy, increasing inflation, and decreasing international reserves.The war in Ukraine which lead to an increase in oil and food prices has largely impacted the economy in Nepal reaching a high of 6.1 percent in 2001 and a low of 0.1 percent in 2002.
Similarly, during 2010-2021, the annual average growth rate was 4.3 percent, a slight or marginal increase by 0.2 percentage points over the previous period, reaching a high of 9 percent in 2017 and a low of -2.4 percent in 2020. This is barely enough to feed the population, which is growing at the rate of nearly 2 per cent per year.If such economic woes continue, hunger, malnutrition rife, employment insecurity, social insecurity, health crisis and loss of livelihood will become a routine occurrence.
- A Ray of Hope :-
Reports suggest the economic situation in Nepal is not as alarming as it is perceived to be. As far as the foreign exchange reserves is concerned, Nepal is in a far more better condition than Pakistan and Sri Lanka.
During the 40th plenary of the 76th session of the United Nations General Assembly (UNGA), Nepal qualified to graduate from the LDC category to a developing country. Despite encouraging signs of recovery, Nepal will need corrective measures to keep the economy firm.
The economy in Nepal which was on the path of recovery following the Covid-19 pandemic has further been hit by the Ukraine crisis.
The International Monetary Fund (IMF) noted that the global economic impact of the war in Ukraine is increasing the existing vulnerabilities and impacting Nepal’s import-reliant economy, increasing inflation, and decreasing international reserves.The war in Ukraine which lead to an increase in oil and food prices has largely impacted the economy in Nepal.
