active· Livelihoods
Private Sector-led Economic Recovery from COVID-19
Major drivers of economic growth in Nepal like agriculture, tourism, and migrant remittance-fuelled consumption are expected to stall due to the economic impacts of COVID-19. This not only risks the loss of development dividends gained in the recent years but also exposes the country to a potentially long and difficult recovery period. With both supply and demand sides impacted by the current crisis, the private sector faces a tough challenge to withstand and re-emerge from the economic fallout from the COVID-19 pandemic.Additionally, the drop in migrant remittances and tourism incomes, two of the major sources of foreign exchange, have exposed the country to risks of deeper economic instability. With a narrow-export basket and a heavily import-reliant economy, large drops in foreign reserves can turn into a balance of payments crisis. Without investment inflows to counter some of the impacts of this shortfall of remittance and tourism incomes, vulnerabilities to exogenously induced balance of payments crisis remain.
Overview
About this project
Major drivers of economic growth in Nepal like agriculture, tourism, and migrant remittance-fuelled consumption are expected to stall due to the economic impacts of COVID-19. This not only risks the loss of development dividends gained in the recent years but also exposes the country to a potentially long and difficult recovery period. With both supply and demand sides impacted by the current crisis, the private sector faces a tough challenge to withstand and re-emerge from the economic fallout from the COVID-19 pandemic.Additionally, the drop in migrant remittances and tourism incomes, two of the major sources of foreign exchange, have exposed the country to risks of deeper economic instability. With a narrow-export basket and a heavily import-reliant economy, large drops in foreign reserves can turn into a balance of payments crisis. Without investment inflows to counter some of the impacts of this shortfall of remittance and tourism incomes, vulnerabilities to exogenously induced balance of payments crisis remain.
Record quality
80% complete
Not reported by the available sources: budget, partner organizations. This is intentionally shown as unavailable rather than estimated.
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- Outcomes
Alignment