GDP growth rate slumps to 0.8 percent
KOL Report

KATHMANDU, July 7 – The government says internal conflict coupled with external factors has drastically reduced the growth rate of the Nepalese economy, falling short by more than 5 percent than the projected growth rate for the fiscal year 2001-2002.

The Economic Survey Report issued by the government a day before it is due to present its budget estimates for the fiscal year 2002/03, says the Nepalese economy grew by just 0.8 percent in the last fiscal year. The figure is over five percent down from the projected growth rate of 6 percent during the last fiscal year.

As a result of internal conflict and the impact on global economy after the September 11 incident in the United States, the Nepalese trade also showed a downward slide. During the first eight months of the fiscal year 2001/02 import and export shrunk by 8.26 percent while the budget deficit grew by almost Rs. 1.6 million to reach Rs. 6.94 billion. Last year the deficit was Rs. 5.37 million.

Two of Nepal’s biggest export products, woolen carpets and ready-made garments slumped by 31.1 percent and 28.8 percent respectively.

According to the Annual Economic Survey Report, the inflation stood at 3 percent during the past one year. However, the Nepalese per capita income shrunk again and was recorded at US$ 226 this year, down from US$ 240.

The annual report says due to Maoist insurgency, the industries had to bear huge losses while influx of inbound tourists registered a slump of 21.2 percent.
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when and where are we heading towards with such GDP growth?