The UN Trade and Development (UNCTAD) launched an analytical work, 'The Digital Economy Report 2024: Shaping an Environmentally Sustainable and Inclusive Digital Future.' The report has sought such policies across the world that encourage inclusive development with minimum negative impacts of digitalization.
Record inflow of remittance and reduction in imports of goods owing to the decrease in demands has ushered in the economy in a comfortable zone in terms of external sector management. Due to depleting foreign currency reserves because of the massive growth in imports of goods, including luxury items like cars and liquors, the external sector pressure had significantly increased in the aftermath of the COVID-19 pandemic, and the experts had feared the country could experience the 'Sri Lankan' fate. Sri Lanka had then run out of foreign currency reserves and had failed even to service its loans. The remittance inflows in the first month of the current Fiscal Year 2023/24 (mid-July to mid-August 2023) have increased by 25.8 per cent to Rs.116.02 billion compared to an increase of 20.3 per cent in the same period the previous year, according to a monthly report published by the Nepal Rastra Bank (NRB) on Sunday. Last year, remittance inflow in the first month stood at Rs. 92.21 billion. Shrawan (mid-July to mid-August) is the ninth month that continuously witnessed more than Rs. 100 billion remittance inflow.
Nepal Rastra Bank (NRB) has made public the macroeconomic and financial report of the first six months of the current fiscal year. The report has revealed that the economy is on the road to recovery. For one thing, the balance of p
Signs of improvement in foreign currency reserves, balance of payment, current account and remittance inflows have been noticed in the national economy. The macroeconomic and financial report of the first six months of the current fiscal year made public by Nepal Rastra B
KATHMANDU, September 22: Nepal’s economy is anticipated to grow by 4.1% (at market prices) in fiscal year (FY) 2022, up from an estimated growth of 2.3% in FY2021, says the latest Asian Development Outlook (ADO) 2021 Update, a flagship publication of the Asian Development Bank (ADB).
“Growth will largely be supported by the ongoing vaccination campaign against COVID-19 as the national immunization plan remains key to Nepal’s economic recovery,” said ADB Country Director for Nepal Arnaud Cauchois. “Downside risks include the uncertain trajectory of COVID-19, a possible surge in COVID-19 cases, and subsequent strict containment measures, which could reverse the gradual economic recovery in FY2021.”
According to the report, growth in Nepal’s agriculture will likely be boosted by increased paddy plantation amid abundant rainfall this monsoon season. Industry output is expected to grow, thanks to a large increase in export volume and stronger domestic demand, as rollout of the national vaccination plan will reduce infection rates over time.
The government’s fiscal policy for 2022 largely focuses on strengthening the nation’s health care system. Monetary policy will remain accommodative through a dedicated refinancing facility, concessional lending for priority projects and for affected businesses. Growth in services will accelerate because of increased economic activities in the wholesale and retail trade, transport, and financial services along with the vaccine rollout nationwide.
International tourism arrivals, which declined by 80.8% in 2020, may gradually recover, as trekking routes and expeditions resume. Hotels and restaurants, travel, and tourism will likely take more time to recover to pre-pandemic level until the sustained containment of COVID-19.
The report says the country’s inflation will rise modestly to 5.2% in FY2022, up from the projected 3.6% in FY2021, due to higher global oil prices and a gradual recovery in domestic demand.
Growth in non-oil imports will likely remain high in FY2022, as investments rise on the gradual revival of the economy. On the other hand, growth in oil imports may be slow, because an increase in hydroelectricity generation may partially offset a rise in fossil fuel consumption. Even with continued strong growth in exports and remittances, the current account deficit will remain high, at an estimated 5.0% of GDP, though down from 8.0% a year earlier.
Other downside risks include natural hazards such as erratic monsoons and floods, which could reduce farm output and damage infrastructure. Heavy rainfall since mid-June 2021 has triggered landslides and floods and led to the loss of lives and livelihoods in some mountainous districts of Nepal.
The report says fiscal spending by provincial and local governments can be improved if they address the persistent capacity deficiencies in investment planning, financial management, project readiness, procurement, and contract management.
The COVID-19 crisis severely affected Africa’s private sector last year. Many countries suffered economic recessions. According to a paper published by the KfW development bank and its French counterpart Agence Française de Développement (AFD), the worst hit sectors were oil and gas as well as tourism. The support programmes that African governments offered paled in comparison with those launched elsewhere.
The report assesses the measures African government
The World Bank has projected that Nepali economy will grow by 2.7 per cent in the current Fiscal Year 2020/21 and regain momentum in the next couple of years.
The forecast for the current fiscal year is higher than the earlier estimates, according to the South Asia Economic Focus Spring 2021, a report published by the WB on Wednesday.
In January this year, the multilateral donor had put the growth forecast for Nepal for current fiscal at 2.1 per cent. Due to the COVID-19 pandemic, the Gross Domestic Product of the country witnessed a negative growth of 1.9 per cent last year.
