Nepal’s economy loses $2.7 billion; $5.7 billion needed for revival

Nepal may need around $5.7 billion to put its economy back on track after it suffered a blow last year following the outbreak of the COVID-19 pandemic

Jan 21, 2021
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Nepal may need around $5.7 billion to put its economy back on track after it suffered a blow last year following the outbreak of the COVID-19 pandemic. The country also suffered a loss of $2.7 billion.

A committee set up by the Nepal government to study the impact of the global pandemic on its economy released its report on Wednesday. The country’s GDP remained just 0.6 percent last year, against the earlier projection of 2.27 percent for the year.

The committee reviewed the different sectors of the economy that suffered heavily due to the crisis. In its recommendation, it also proposed a three-phased strategy, dividing into short term, medium-term, and long term goals to tackle these challenges.

The report said the short-term relief and revival measures would cost $2.04 billion, $2.44 billion for the midterm. And the long term measures will need $1.14 billion. The committee also recommended the government continue to invest in development projects, infrastructure sectors for employment generations. 

The report also asked the government to work toward self-sufficiency in certain sectors. 

The global shutdown caused by the pandemic last year severely affected the country's tourism industry, with hundreds of thousands losing their jobs. While the national lockdown and the border closure also affected other industries.

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