Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions

Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions

The global COVID-19 (Coronavirus) pandemic imposed both a supply and a demand shock on Nepal’s economy, which adversely affected growth. The global crisis induced by the pandemic initially impacted Nepal through the tourism sector, with arrivals fr...

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Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
ECONOMIC GROWTH
ECONOMIC OUTLOOK
RISKS
ECONOMIC RECOVERY
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
PANDEMIC RESPONSE
Online Access:http://documents.worldbank.org/curated/en/473551595429740654/Nepal-Development-Update-Post-Pandemic-Nepal-Charting-a-Resilient-Recovery-and-Future-Growth-Directions
http://hdl.handle.net/10986/34178
id okr-10986-34178
recordtype oai_dc
spelling okr-10986-341782021-06-14T09:57:10Z Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions World Bank ECONOMIC GROWTH ECONOMIC OUTLOOK RISKS ECONOMIC RECOVERY CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE The global COVID-19 (Coronavirus) pandemic imposed both a supply and a demand shock on Nepal’s economy, which adversely affected growth. The global crisis induced by the pandemic initially impacted Nepal through the tourism sector, with arrivals from China dropping by around 70 percent in February and a full stop to the issuance of visitor visas taking effect in early March 2020, which has effectively dropped tourist arrivals to zero. The impacts of the pandemic did not remain limited to tourism. On March 21, the Government of Nepal announced a nationwide lockdown, which affected industrial and agricultural production, leading, for instance, to more than a 25 percentage point decline in capacity utilization of industry by early June 2020 and a 64.7 percent (y/y) drop in credit provision to the private sector during the two-month lockdown period. Demand for consumption and production products, such as diesel and petrol, slowed, with many Nepalese experiencing job losses or the inability to outmigrate due to widespread travel restrictions. A domestic outbreak of COVID-19 commenced in May, prolonging the lockdown and imposing substantial human and further economic costs. As a result of the impact of COVID-19, GDP growth in Nepal is estimated at 1.8 percent in FY2020, compared to 7 percent in FY2019. Growth in the service sector is now estimated at 1 percent, the lowest since FY2002, while growth in the industrial sector is estimated at 3.2 percent, a four-year low, due to the deceleration in overall growth. 2020-07-23T15:13:21Z 2020-07-23T15:13:21Z 2020-07-23 Report http://documents.worldbank.org/curated/en/473551595429740654/Nepal-Development-Update-Post-Pandemic-Nepal-Charting-a-Resilient-Recovery-and-Future-Growth-Directions http://hdl.handle.net/10986/34178 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling South Asia Nepal
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ECONOMIC GROWTH
ECONOMIC OUTLOOK
RISKS
ECONOMIC RECOVERY
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
PANDEMIC RESPONSE
spellingShingle ECONOMIC GROWTH
ECONOMIC OUTLOOK
RISKS
ECONOMIC RECOVERY
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
PANDEMIC RESPONSE
World Bank
Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions
geographic_facet South Asia
Nepal
description The global COVID-19 (Coronavirus) pandemic imposed both a supply and a demand shock on Nepal’s economy, which adversely affected growth. The global crisis induced by the pandemic initially impacted Nepal through the tourism sector, with arrivals from China dropping by around 70 percent in February and a full stop to the issuance of visitor visas taking effect in early March 2020, which has effectively dropped tourist arrivals to zero. The impacts of the pandemic did not remain limited to tourism. On March 21, the Government of Nepal announced a nationwide lockdown, which affected industrial and agricultural production, leading, for instance, to more than a 25 percentage point decline in capacity utilization of industry by early June 2020 and a 64.7 percent (y/y) drop in credit provision to the private sector during the two-month lockdown period. Demand for consumption and production products, such as diesel and petrol, slowed, with many Nepalese experiencing job losses or the inability to outmigrate due to widespread travel restrictions. A domestic outbreak of COVID-19 commenced in May, prolonging the lockdown and imposing substantial human and further economic costs. As a result of the impact of COVID-19, GDP growth in Nepal is estimated at 1.8 percent in FY2020, compared to 7 percent in FY2019. Growth in the service sector is now estimated at 1 percent, the lowest since FY2002, while growth in the industrial sector is estimated at 3.2 percent, a four-year low, due to the deceleration in overall growth.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions
title_short Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions
title_full Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions
title_fullStr Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions
title_full_unstemmed Nepal Development Update, July 2020 : Post-Pandemic Nepal – Charting a Resilient Recovery and Future Growth Directions
title_sort nepal development update, july 2020 : post-pandemic nepal – charting a resilient recovery and future growth directions
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/473551595429740654/Nepal-Development-Update-Post-Pandemic-Nepal-Charting-a-Resilient-Recovery-and-Future-Growth-Directions
http://hdl.handle.net/10986/34178
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