Energy Conspectus
Nepal – A True Experiences in Paradise
Nepal is a sovereign country located in South Asia. Although it is a landlocked country nestled between India and China, it is blessed with abundant natural resources and diverse geography. It lies between latitudes 26° and 31°N, and longitudes 80° and 89°E with an area of 147,516 km2 (56,956 sq mi).
The country has witnessed noteworthy progress in social and economic sectors in recent years. As underscored in the economic survey report of the fiscal year 2019/2020 published by the Ministry of Finance (Government of Nepal), the macroeconomic indicators by mid-March of 2019/20 are observed to be satisfactory. During this time, the inflation rate, balance of payment position, foreign exchange reserves, investment, and financial indicators are observed to be favorable for the economic stability of Nepal. There has been an improvement in the trade deficit and surplus in the balance of payment situation due to the contraction in import and expansion in export. Furthermore, financial services have expanded considerably and foreign direct investments are on an increasing trend. By mid-March of 2019/20, the foreign direct investment approved by the Department of Industry has increased by 165.4 percent to Rs.29.67 billion in comparison to that of the corresponding period of the last fiscal year. In regard to physical infrastructure development, satisfactory achievement has been made with the implementation of more national pride projects such as Nagdhunga – Naubise Tunnel Road and Upper Trishuli 1 in 2020.
Regardless of the rapid progress experienced in the overall economic activities until mid-march of 2019/20, the COVID-19 pandemic has severely affected the global economy due to which the growth of the Nepalese economy is projected to remain at 2.3 percent. The average economic growth rate over the last three years has remained 7.3 percent (in producer’s price). Similarly, per capita gross domestic product (GDP) (in current price) is estimated to increase by 7.5 percent in comparison to that of the last fiscal year and reach US Dollar 1,085 (Rs.126, 018) in the fiscal year 2019/20. The economic activities were at a standstill due to the outbreak of the COVID-19 pandemic but looking at the present scenario, the country is advancing towards the resurgence of the economy.
References:
Economic Survey Report 2019/20
Author: Ministry of Finance, Government of Nepal