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    Pandemic Shrinks Savings: Nepalis Spent 91.1% of their Earnings!
    Saturday 25th May 2024

    Pandemic Shrinks Savings: Nepalis Spent 91.1% of their Earnings!

    A Nepali, on average, was able to save less than NPR 9 out of NPR 100 amid the pandemic.
    Coronavirus

    Government

    News

     
    Pandemic Shrinks Savings: Nepalis Spent 91.1% of their Earnings!

    Nation-wide lockdown, business shutdown, and huge employment loss triggered by the ongoing pandemic have impacted the saving capacity of Nepalis in the fiscal year 2019/20.

    According to a report by the Central Bureau of Statistics (CBS), a Nepali, on average, spent 91.1% of his/her income in the FY 2019/20. This implicates that a Nepali was able to save less than NPR 9 out of NPR 100 amid the pandemic year.

    As per the report, the consumption expenditure of Nepalis in the FY 2018/19 was NPR 84.3 on average. This expenditure raised by 6.8% in FY 2019/20, indicating a significant drop in the saving capacity of Nepalis.

     

    Shant Raj Subedi

    Former Finance Secretary Shant Raj Subedi informed that the lack of income during the pandemic has resulted in a decline in the saving capacity. “We have to consume even if we don’t have an income source,” he said.

    “Decrease in the saving capacity is directly proportional to investment, and lack of investment creates unemployment, resulting in a decrease in national income,” said Subedi.

    Likewise, Nepal’s Per Capita Income (PCI) has also decreased. According to the report, PCI stood at USD 1,148 in FY 2019/20, down from USD 1,171 in FY 2018/19.

    Gross Domestic Product (GDP)

    However, with the change in the base of GDP calculations, Nepal has witnessed a rise in its GDP value. According to the CBS, the nation’s GDP valued at NPR 3.934 trillion, an increase by 14%. Nepal’s GDP stood at NPR 1.559 trillion in FY 2010/11.

    Stay Tuned to NepaliSansar for Latest Nepal Economy News!


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