Facets of Nepalese Economy

Question 1

Features of Nepalese Economy

Answer 1

-Rapid expansion of service sector
-Dependent upon remittance
-Limited industrial growth
-Provincial Disparities
-High Trade deficit
-Structural defect: Use of tax collected from imported items to run the government
-Potential for tourism, hydroelectricity, IT, Spirituality
-High Consumption and low savings
-Low capital expenditure
- Provincial Disparities

Question 2

4 sectors of Nepalese economy

Answer 2

Real, Monetary and Financial, Public Finance and External

Question 3

Real Sector concept

Answer 3

The real sector of an economy is the part of the economy that produces and consumes goods and services

Question 4

Real Sector Data (2080/81):
GDP
Economic Growth
PCI
Inflation
Poverty
Unemployment
Investment
Consumption
Saving

Answer 4

GDP: Rs. 5704 billion
Economic Growth: 3.87%
PCI: $1456
Inflation (Average): 5.44%
Poverty: 20.27 (79/80 Living standard survey)
Unemployment: 12.6% (79/80 Living standard survey)
Investment (Gross): Rs. 1741 billion
Consumption: Rs. 5270 billion
Saving (GNS): Rs. 2062 Billion
GDS: Rs. 434 billion

Question 5

Public Finance Sector Data (2081/82)
Budget: Income and Expenses, Income source and expense allocation
Debt: Internal and External

Answer 5

Budget: Rs. 1860 Billion
Expense: 60% Recurring, 20% Capital, 20% Financial
Income:
Tax Collection: NPR 1260 Billion
Foreign Grants: NPR 52 billion
Foreign Loans: NPR 218 billion
Domestic Borrowing: NPR 330 billion

Internal Debt: 1180 billion NPR
External Debt: 1252 billion NPR (80/81 data both)
Debt to GDP: 42.64%
Total Public Debt till 2081 Kartik: Rs. 2731 billion

Question 6

Monetary and Financial Sector data
M2 growth rate
Financial literacy
Financial Inclusion

Answer 6

M2 growth rate: 13% (80/81) and 0.4% (3 months 81/82)
Financial literacy: 57.9% 2022
Financial Inclusion: 63%

Question 7

External Sector data 80/81
Export
Import
Remittance
BoP
Trade Deficit
Foreign Currency Reserves
Remittance to GDP

Answer 7

Export: Rs. 152 billion (38.38 b 81/82 3mnths)
Import: Rs. 1592 billion (390.75 b 81/82 3mnths)
Remittance: Rs 1445 billion
Remittance to GDP: 25%
BoP: Rs. 502.5 billion
Trade Deficit: Rs. 1440 billion
Foreign Currency Reserves: $16.7 billion (1st 4 months 81/82)