COVID-19 Confines Nepal’s Economic Growth to 2.3%

So far, Nepal has recorded 778 coronavirus infection cases and four death cases. Currently, 598 patients are undergoing treatment across the country, while 176 were discharged after recovery.

The coronavirus pandemic continues to spread across the world, with more than 5.7 million COVID-19 cases in 188 countries. Almost 352,604 people have lost their lives to the contagion.

COVID-19 Situation in Nepal

Even though Nepal is witnessing new coronavirus cases daily for the last two weeks, the country’s count is almost negligible compared to other countries.

Nepal stands at 119th position in the list of 188 countries based on the reported coronavirus cases.

However, the economic implications of the coronavirus pandemic in Nepal are extremely severe.

According to the Economic Survey 2076/77 presented by Finance Minister Dr. Yubaraj Khatiwada at the Federal Parliament on May 26, the economic growth rate is drastically impeded by the coronavirus pandemic.

The country’s economic growth rate is poised to remain at 2.3% against the government’s estimate of 8.5% for this FY.

Source: NepalinData

Moreover, the economic growth rate remained at 7.3% on average in the past three years.

Other Economic Statistics Include

• Per capita GDP to increase by 7.5% to reach USD 1,085 from previous FY
• Consumer inflation rate stands at 6.5% as of mid-March this year against 4.3% in last FY
• Investment to decrease by 3.4% to reach NPR 1.889 trillion against the last FY
• Expenditure increased by 12.9% to reach NPR 610 billion as of mid-March this year
• Revenue collection stands at NPR 546 billion as of mid-March

Province Wise GDP of Nepal 2020

Source: NepalinData

Moreover, the Nepali Government has recorded around NPR 92 billion debt this FY, taking the country’s total debt to NPR 1.139 trillion.

Of the total debt, the internal debt is at NPR 440.05 billion, while the external debt is at NPR 699.75 billion.

Growth Rates of Real GDP of SAARC Countries 2020-21

Source: NepalinData

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