Macroeconomic Update: Nepal (August 2013)
This edition of Macroeconomic Update forcasts GDP growth at 4.5% in FY2014 for Nepal. It also explores the prospects and challenges faced by Nepal in graduating to developing country status.
As a result of the delayed full budget due to the lack of political consensus, the unfavorable monsoon and the shortage of chemical fertilizers, gross domestic product (GDP) growth dipped to an estimated 3.6% in FY2013, down from 4.5% in FY2012. The major contribution to overall GDP growth came from the services sector, which grew at an estimated 6% on the back of the rise in remittances-induced consumption demand. Looking forward, the outlook for FY2014 is more optimistic than that for FY2013. Taking into account the adequate monsoon and supply of chemical fertilizers, timely full budget and the expected higher rate of remittance inflows than in FY2013, GDP growth is forecast at 4.5% in FY2014. These factors are expected to boost agriculture production, construction and services sector activities, respectively.
This edition of Macroeconomic Update's issue focus explores the prospects and challenges faced by Nepal to realize its vision of graduating from Least Developed Country (LDC) category to a developing country status by 2022.
Produced by ADB's Nepal Resident Mission, Macroeconomic Update is published twice a year.
- Executive Summary
- Macroeconomic Update
- Real Sector
- Fiscal Sector
- Monetary Sector
- External Sector
- Issue Focus: Graduation from LDC Category
- Appendix 1: Review of Budget for FY2014
- Appendix 2: Review of Monetary Policy for FY2014
- Appendix 3: Review of Approach Paper to TYIP FY2014-FY2016
- Appendix 4: Country Economic Indicators
- Appendix 5: Country Poverty and Social Indicators