Nepal Economy – Economic Development of Nepal
We talk about Nepal economy and Nepal economic status in this article. We will read the economic development of Nepal. Nepal is one of the land locked country as it is surrounded by India and China beside this it is also one of the 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 in the development of the country. Economic development in Nepal has been intricate and affected through the consistent trade in political scenarios which has ranged from monarchy to being dominated by the Communist birthday celebration in 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 to economic administration and improvement has been a serious drag on enterprise activity. Lack of transparency, corruption, and a burdensome approval method obstruct much-needed expansion of private funding and production. Property rights are undermined with the aid of the inefficient judicial system, which is situation to giant corruption and political influence.
How is Nepal Economy?
As we know if the country has got poor economic condition then there there may arise many difficulties in the development programs, which won’t let country to move forward. So for better development of country there is needed of better economic development or we can say there must be good economic condition. The country has, made a lot more progress toward sustainable economic growth from 1950s and has opened the country to economic liberalization which has been leading to economic growth and improvement in living standards than compared to the past. The biggest challenges faced by the country in achieving higher economic development are the frequent changes that occurs in political leadership as well as corruption. Nepal use 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 which are covered by shrubs, pastureland & forest whereas the rest of land are mostly mountainous.
Economic Development of Nepal
GDP of country highly depends upon the remittances of foreign workers. According to statistics the GDP of Nepal according to 2014 is $67 billion and the GDP growth according to 2018 is 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 poverty line according to statistics 2010. The mains industries for earning are tourism, garments, food, beverages, metal manufactures , herbs and so on. According to fiscal year 2013 there is $6 billion revenues and has $7 billion expenses. The Cost of Living Index in Nepal is comparatively lower than many countries but not the least. The quality of life has declined to much less desirous value in recent years. Nepal was ranked as 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 present context there is more expenses than revenue which has been affecting economic condition of Nepal.