For the last few years, Nepalese economy has suffered a lot because of political crisis and civil war. After the pro democracy movement of April 2006 successfully forced the King to leave most of his power to the democratic government, many people hoped that the good days for the country’s economy is going to start. However, this is not going to be the case- at least, not for the time being. Asian Development Bank (ADB) has projected GDP growth of just 2.3%. I am quoting from the report of ADB:
“In Nepal, growth in FY2006 is estimated at only 2.3%, reflecting the adverse effects of the conflict and political problems, particularly for manufacturing, transport, and communications. However, this estimate is slightly higher than projected in April, and stems from the restoration of Parliament and prospects of some political progress to break the current logjam. For similar reasons, GDP growth in FY2007 has been upgraded from 3.4% to 4.0%. Self-evidently, progress in the peace process remains the key factor in realizing growth forecasts.”
So, all is not lost for Nepalese economy. Even if this year is bad there is hope for next year. Democracy and peace are going to play an important role in bringing better economic condition for the people of Nepal.
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