Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery

Nepal has been hit hard by COVID-19, although the situation has improved more recently. As the outbreak became widespread in mid-2020, a nationwide lockdown was implemented from March to July in 2020, followed by localized lockdowns, including in t...

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Main Author: World Bank Group
Format: Report
Language:English
Published: World Bank, Kathmandu 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/332751617996242148/Nepal-Development-Update-Harnessing-Export-Potential-for-a-Green-Inclusive-and-Resilient-Recovery
http://hdl.handle.net/10986/35420
id okr-10986-35420
recordtype oai_dc
spelling okr-10986-354202021-06-14T09:53:09Z Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery World Bank Group ECONOMIC GROWTH ECONOMIC OUTLOOK RISKS TRADE RESILIENT RECOVERY EXPORT PERFORMANCE GREEN GROWTH INCLUSIVE GROWTH Nepal has been hit hard by COVID-19, although the situation has improved more recently. As the outbreak became widespread in mid-2020, a nationwide lockdown was implemented from March to July in 2020, followed by localized lockdowns, including in the Kathmandu Valley up until mid-September. During this time transportation, education and tourism-related activities were significantly restricted. Since October, the number of cases has been declining steadily, allowing a gradual easing of movement restrictions. Nepal launched its vaccination program on January 27, 2021, and about 5.9 percent of the population (or 1,791,606 people) were inoculated by mid-March 2021. Thus, there are good prospects that further outbreaks of COVID-19 can be contained. After contracting for the first time in 40 years in FY20 - by 1.9 percent - the economy showed signs of moderate recovery in the first half of FY21. Activity resumed in wholesale and retail trade, transport, and financial services, while favorable monsoons drove robust agricultural growth. However, tourism remained at a standstill and private investment anemic given high levels of overall uncertainty related to the epidemic as well as political developments. Uncertainty arising from the epidemic has also contributed to fiscal risks due to the degree of fiscal stimulus provided to support individuals and firms and which will need to eventually be rolled back for fiscal sustainability. Political uncertainty also heightened in December 2020 when the Prime Minister dissolved Parliament. The Supreme Court overturned the decision, reinstating Parliament in February 2021 and precipitating the split of the two-party majority coalition in March. 2021-04-12T14:15:08Z 2021-04-12T14:15:08Z 2021-04-11 Report http://documents.worldbank.org/curated/en/332751617996242148/Nepal-Development-Update-Harnessing-Export-Potential-for-a-Green-Inclusive-and-Resilient-Recovery http://hdl.handle.net/10986/35420 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Kathmandu 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
TRADE
RESILIENT RECOVERY
EXPORT PERFORMANCE
GREEN GROWTH
INCLUSIVE GROWTH
spellingShingle ECONOMIC GROWTH
ECONOMIC OUTLOOK
RISKS
TRADE
RESILIENT RECOVERY
EXPORT PERFORMANCE
GREEN GROWTH
INCLUSIVE GROWTH
World Bank Group
Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery
geographic_facet South Asia
Nepal
description Nepal has been hit hard by COVID-19, although the situation has improved more recently. As the outbreak became widespread in mid-2020, a nationwide lockdown was implemented from March to July in 2020, followed by localized lockdowns, including in the Kathmandu Valley up until mid-September. During this time transportation, education and tourism-related activities were significantly restricted. Since October, the number of cases has been declining steadily, allowing a gradual easing of movement restrictions. Nepal launched its vaccination program on January 27, 2021, and about 5.9 percent of the population (or 1,791,606 people) were inoculated by mid-March 2021. Thus, there are good prospects that further outbreaks of COVID-19 can be contained. After contracting for the first time in 40 years in FY20 - by 1.9 percent - the economy showed signs of moderate recovery in the first half of FY21. Activity resumed in wholesale and retail trade, transport, and financial services, while favorable monsoons drove robust agricultural growth. However, tourism remained at a standstill and private investment anemic given high levels of overall uncertainty related to the epidemic as well as political developments. Uncertainty arising from the epidemic has also contributed to fiscal risks due to the degree of fiscal stimulus provided to support individuals and firms and which will need to eventually be rolled back for fiscal sustainability. Political uncertainty also heightened in December 2020 when the Prime Minister dissolved Parliament. The Supreme Court overturned the decision, reinstating Parliament in February 2021 and precipitating the split of the two-party majority coalition in March.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery
title_short Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery
title_full Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery
title_fullStr Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery
title_full_unstemmed Nepal Development Update, April 2021 : Harnessing Export Potential for a Green, Inclusive, and Resilient Recovery
title_sort nepal development update, april 2021 : harnessing export potential for a green, inclusive, and resilient recovery
publisher World Bank, Kathmandu
publishDate 2021
url http://documents.worldbank.org/curated/en/332751617996242148/Nepal-Development-Update-Harnessing-Export-Potential-for-a-Green-Inclusive-and-Resilient-Recovery
http://hdl.handle.net/10986/35420
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