Macroeconomic Update: Nepal (August 2014) | Asian Development Bank

Macroeconomic Update: Nepal (August 2014)

Institutional Document | August 2014

As a result of the bumper agricultural harvest, moderate recovery in construction, and robust services activities backed by high remittance income, GDP for Nepal grew by an estimated 5.2% in FY2014, up from 3.5% in FY2013.

The major contribution to overall GDP growth came from the services sector, which grew at an estimated 6.1%, the highest in the last 6 years, on the back of the rise in remittance-induced consumption demand.

In Issue Focus, it explores the mainstreaming of environment for economic growth and poverty reduction. Currently, one of the major challenges faced by Nepal is to ensure not only a high and inclusive economic growth, but also to make it environment-friendly. Thus far, since growth is largely driven by exogenous factors such as monsoon-fed agriculture production and remittances-induced services sector growth, economic activities have been at best minimally damaging to the environment.

Background

Produced by ADB's Nepal Resident Mission, Macroeconomic Update is published twice a year, this publication reviews and analyzes macroeconomic updates based on the performances of Nepal's real, fiscal, monetary, and external sectors. It also focuses on the country's mainstreaming of environment for economic growth and poverty reduction.

Contents 

  • Executive Summary
  • Macroeconomic Updates
  • Issue Focus: Mainstreaming Environment for Economic Growth and Poverty Reduction
  • Appendixes