Growing GDP and remittance
Nepal is ranked highest among South Asian countries in the GDP growth with 7.5% in FY2017, showing steep recovery after the earthquake and Blockade. The country must create 240,000 jobs a year to maintain its employment rate which is expected to slow down to 4.6% in 2018, according to South Asia Economic Focus report by World Bank. However, growth in FY2018 will be 4.6% according to the Bank’s twice-yearly Nepal Development Update. The main challenge will be managing fiscal and current account deficits.
Similarly, the World Economic Outlook of the International Monetary Fund (IMF) shows Nepal’s monthly remittance rose to an all-time high of $680 million in March 2018. The reason is said to be an increase in bank deposits to almost 16%. However inflation rate also rose to the 6% in the same period, the IMF said.