Medium-term macroeconomic challenges
Except for a few episodes of growth spurts, economic growth has largely been low yet volatile in Nepal, mostly stagnating below 5%. Similarly, inflation has been stubbornly high, mostly settling in between 6% and 12%. Public expenditure absorption capacity is receding but revenue mobilisation is robust on the back of taxes on remittance-financed imports and domestic consumption. Outstanding public debt is only about a quarter of gross domestic product (GDP). External sector is largely stable, but is vulnerable to fluctuation in remittance inflows. Financial sector is relatively stable, but remains exposed to asset-liability mismatches arising from recurring sources, including reckless lending growth amid slowdown in deposit growth, evergreening of troubled assets and mismanagement. Meanwhile, unemployment rate remains high. Read more
कम्युनिष्टहरुको संयुक्त गठबन्धनले नेपालको सन्दर्भमा के अर्थ राख्छ ?
वाम राजनीतिक दलहरु विभाजन भएका समाचार आइरहनु कुनै अनौठो विषय नभएको नेपालमा अकस्मात् प्रमुख कम्युनिष्ट राजनीतिक शक्तिहरु खासगरी नेपाल कम्युनिष्ट पार्टी – संयुक्त मार्कसिस्ट लेनिनिस्ट (नेकपा – एमाले) कम्युनिष्ट पार्टी – माओवादी केन्द्र (नेकपा–माके) र नयाँ शक्ति नेपाल एक आपसमा एकिकरण गर्ने घोषणाले सबै नेपालीलाई आश्चर्य चकित पारेको छ । यो नेफ्टेकले ९३लभातबपभ० नेपालमा कम्युनिष्ट आन्दोलनको इतिहास र यसले आगामी दिनहरुमा देशलाई कस्तो असर पार्न सक्छ भन्ने विषयमा विश्लेषण गर्ने प्रयत्न गरेको छ । Read more
Macroeconomic Situation: satisfactory but weak foundation for growth
Macroeconomic situation of Nepal is satisfactory, but the foundation of growth is weak due to structural impediments and institutional challenges. The government’s present target to graduate to middle-income country by 2030 is difficult to achieve. Read more
Reemergence of United Communists – What Does It Mean For Nepal?
In a country, where split in political parties has been making news, a merger among major leftist forces including Communist Party Nepal-United Marxist Leninist (CPN-UML), Communist Party Nepal –Maoist (CPN-M) and Naya Shakti Nepal took everyone by surprise. This #neftake makes a quick analysis of the history of communist movement in Nepal and provides perspectives on what this could mean for the country. Read more
In Conversation with the Norwegian Ambassador to Nepal, H. E. Kjell Tormod Pettersen.
In Conversation with his Excellency Kjell Tormod Pettersen. His Excellency Kjell Tormod Pettersen was the Ambassador Extraordinary and Plenipotentiary of Norway to Nepal. He has worked as Senior Advisor to the Department for Security Policy and High North issues. He was Minister Counsellor and Deputy Head of Mission at the Norwegian Embassy in Beijing. Read more
Macroeconomic outlook for FY2018
The government’s GDP growth target is 7.2%, up from a 6.9% growth (at market prices) in FY2017, thanks to a favorable base effect, good monsoon, improved energy supply, reconstruction activities and normalization of supplies after two years of disruption (earthquakes in FY2015 and trade blockade in FY2016). Achieving a higher growth rate in FY2018 would require stronger factors than in FY2017. However, this is an unlikely scenario. Read more