Economy on the Verge of Collapse?

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Finance Minister Mahat has made public the economic performance scenario for over the past couple of years and has blamed the royal government for the failure of economy. He has mentioned various indicators to evidence his claim. However, is his blame for the royalist government justified? Are not the political parties also responsible for the poor economic performance?

Some of the highlights of the "white paper"

-GDP growth in the past 3 years has remained low at 2.6% while it was about 5% in the 10 year period ending 2058/59.

-money growth has remained low at about 11% in recent years.

-Four year period till 2058-59 boasted an export growth rate of about 16% while the current fiscal year is expected to have an export growth rate of about 8%.

-Current Consumer Price Index puts inflation rate at more than 7% while it was low at 3% in 2058-59.

For more, see the pdf file.

white paper 

source:Nepalnews.com 

4 Responses to “Economy on the Verge of Collapse?”

  1. sanobhai Says:

    I wonder if most of the remittances is being used to fund imports.

  2. gp Says:

    It is clear that the economy started to nosedive after the maoists began their violence. Mahat is used to operating the country with aid and loans. The royal govt. did not have that benefit, so technically one cannot blame them for a dismal performance. It is a sad truth that this nation relies too much on aid and loans, I doubt any government can turn the wheel around without reliance on aid in 14 months leave alone the fact that the entire world and the political parties inside the nation were not helping the process either.

  3. sanobhai Says:

    Apart from aid and loans, I hope we will see three positive things immediately:

    1. Duty-free (or close) access to Indian market for our exports. I read about this a few days ago.

    2. Duty-free (or close) access to European and US markets. I read that our Finance minister is making this request to the countries.

    3. Increase in the number of tourists. The advisories are being lifted. The protests are few. Everyone has read about the cease fire.

    The difference between the previous regime and the current times is not just lack or presence of aid and loans. While comparing this government (and the current situation) with the previous regime, it is important to take these developments into account.

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