Macroeconomic Update: Nepal (August 2015)
This edition of Macroeconomic Update forecasts FY2016 GDP growth and inflation to be at 4.5-5.5% and 8.5%-9.5%, respectively for Nepal. It includes a section on accelerating post-eartquake reconstrution for faster recovery.
The April 25 earthquake and subsequent aftershocks slowed down economic activities, weakened public expenditure and revenue performance and increased remittance inflows, which contributed to large current account and balance of payment surpluses.
The Issue Focus section discusses the importance and ways to accelerate post-earthquake reconstruction for faster recovery. The earthquake caused tremendous loss of lives and properties, slowed progress in achieving some of the MDGs, pushed about a million people below the poverty line, and sapped investors’ and consumers’ confidence. The National Reconstruction Authority needs to be fully operationalized fast and it has to effectively coordinate with the development partners to ensure that the aid commitment for reconstruction is utilized within the given timeframe.
This would require preparing a time-bound investment action plan, a strong pipeline of viable projects, outsourcing of relevant functions, and a broad political buy-in. Overall, rehabilitation and reconstruction should primarily aim at increasing productivity-enhancing public investment, which is a key to ensuring a meaningful structural transformation, whereby high value-added and high productivity sectors are more dominant than low value-added and low productivity sectors in the medium
Produced by ADB's Nepal Resident Mission, Macroeconomic Update is published twice a year. It reviews and analyzes mid-year updates on real, fiscal, monetary, and external sectors.
- Executive Summary
- Macroeconomic Update
- Real Sector
- Fiscal Sector
- Monetary Sector
- External Sector
- Issue Focus: Accelerating Post-earthquake Reconstruction for Faster Recovery
- Appendix 1: Review of FY2016 Budget
- Appendix 2: Review of Monetary Policy for FY2016
- Appendix 3: ADB Assisisted Projects
- Appendix 4: Country Economic Indicators
- Appendix 5: Country Poverty and Social Indicators