Posted by: bibas100 May 23, 2006
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I had written a paper on Nepalese Economy in South Asia. I guess we can discuss something about economics rather than clinging to the same old politics. The major findings were:
Nepal is among the poorest countries with a GDP per capita ( current prices) of just US $246 in 2005
Nepal is a subsistence economy with more than 80% involved in agriculture
Agriculture contributes 40% to total GDP while industry and services account for 20% and 40 % respectively
Nepal has a current account surplus for the past 5 years; however, it has a deficit in its trade balance.
GDP growth rate in Nepal is among the lowest in the region with just 3.8% over the past 5 years while Pakistan enjoyed a growth of approximately 30% during the same period
Inflation rates are higher in the region with Nepal having a rise in inflation rate from 2.4% in 2001 to 3.8% in the year 2005.
Rate of increase in consumption has gone down with the inception of Maoists problem in 1996.
Nepal recorded a higher growth in public consumption than in private consumption between 1996/97 and 2002/03.
Instability, insecurity, lack of skilled labor, lack of infrastructure and lack of technology are among the major reasons for poor performance of Nepal.
If you want to read in detail, visit: http://dreamnepal.wordpress.com