Reported end date passed· 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.

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