We talk about Nepal economy and Nepal’s economic status in this article. We will read about the economic development of Nepal. Nepal is a land-locked country as India and China surround it. It is also a developing country. The economic condition of Nepal is not that much better due to different political instability and different many other reasons which may affect the development of the country.
Economic development in Nepal has been intricate and affected by the consistent trade in political scenarios, which has ranged from monarchy to being dominated by the Communist birthday celebration in the existing context. Nepal’s financial system lacks the entrepreneurial dynamism wished for more desirable monetary growth and long-term development. Overall, susceptible reform efforts have failed to stimulate broad-based poverty reduction.
The country continues to hinder private-sector development, and political instability similarly weakens the ability to implement monetary reform or create a secure development environment. The statist strategy for economic administration and improvement has been a severe drag on enterprise activity. Lack of transparency, corruption and a burdensome approval method obstruct the much-needed expansion of private funding and production. Property rights are undermined with the aid of the inefficient judicial system, a situation of giant corruption and political influence.
How is Nepal Economy?
As we know, if the country has got poor economic conditions, then there may arise many difficulties in the development programs, which won’t let the country move forward. So for better development of the country, there is needed for better economic development, or we can say there must be sound economic conditions. The country has made much more progress toward sustainable economic growth since the 1950s. It has opened the country to economic liberalization, which has been leading to economic growth and improvement in living standards compared to the past. The biggest challenges faced by the country in achieving higher economic development are the frequent changes that occur in political leadership as well as corruption.
Nepal uses a series of five-year plans to make progress in economic development. Agriculture has become Nepal’s principal economic activity, employing about 65% of the population, which has been providing 31.7% of GDP. Only about 20% of the total area is cultivable, while another 40.7% is forested, covered by shrubs, pastureland & forest, whereas the rest is primarily mountainous.
What happened to the economy of Nepal after the earthquake?
Economic Development of Nepal
The GDP of a country highly depends upon the remittances of foreign workers. According to statistics, the GDP of Nepal according to 2014 was $67 billion and the GDP growth according to 2020 was 7.5%. The GDP per capita is $2400. The different GDP occupied by different sectors are agriculture has occupied 35%, industry occupied 20%, whereas service occupied 45%. About 25.2% population are under the poverty line, according to statistics in 2010. The primary industries for earning are tourism, garments, food, beverages, metal manufacturing, herbs and so on.
According to the fiscal year 2013, there are $6 billion in revenues and $7 billion in expenses. The Cost of Living Index in Nepal is comparatively lower than in many countries, but not least. The quality of life has declined to a much less desirable value in recent years. Nepal was ranked 54th worst of 81 ranked countries. Nepal’s current score of 19.5 is better than in 2010 and much improved than its score of 27.5 in 1990. According to the present context, there are more expenses than revenue which has been affecting the economic condition of Nepal.