Economic Survey of Nepal 2076/77

The economic survey 2076/77 has been published by the ministry of finance including the major economic indicators and analysis of the overall economic situation of the economic activities up to the end of the Fiscal Year 2076/77.

According to the survey, the overall economic indicators of Nepal are in normal condition till the end of the Fiscal Year 2076/77. Inflation, the balance of payments, foreign exchange reserves, investments, and financial indicators were found to be normal during that period.

The survey also mentioned that Nepal's trade has improved and the balance of payments have been in surplus due to the contraction in imports and expansion in exports during this period, a significant expansion in financial services and an enthusiastic increment in foreign investment.

With just three months to go to end the current fiscal year, the global outbreak has started from China and spread all over the globe.

As a result of such spread of the pandemic, all the countries of the globe have started to close their borders and finally started the lockdown. It was since January and the majority of the countries are still in lockdown. 

Along with other countries of the world and our neighbor country India, Nepal has also started lockdown and the whole country is in lockdown for more than the last 60 days.

This pandemic and the ongoing lockdown have had a serious impact on the overall economic activity of the globe and Nepal is also not skipping from this terrible crisis.

The survey has mentioned the fact that due to such a global economic meltdown, lockdown, increasing health crisis, and structure of the economy of Nepal the investment and business environment of Nepal are in danger.

It has thus estimated the lower economic growth rate of the economy for the coming fiscal year has requested all the Nepalese and concerned authorities to work securely and has addressed the need of working on focused, people's daily life-oriented and economic revival types of activities.

In fact, this pandemic has destroyed human lives, the world of production, chain of supply and consumption, and so on economic outcomes. 

In the case of Nepal up to the initial nine months of this fiscal year, all the economic activities have shown positive and progressive growth and expansion.

But the outbreak and continuous shutdown of all the economic activities have put the county in a risky situation and as a result of their simultaneous effect a 2.3 percentage economic growth rate is estimated for the coming economic year.

Following the table shows the major changes that Nepal has achieved in this fiscal year as a comparison to the previous one and expected values for the coming fiscal year. 

However, it is only the preliminary estimation of the Ministry of Finance and the ultimate effect will be measured by the duration of lockdown and degree of its effect in several sectors of the economy of Nepal.

Major economic indicators(Economic Survey of Nepal)

Indicators	Value in 2075/76	Value in 2076/77
Economic growth rate	7.0%	2.28*%(Factor cost)
Per Capita Income(PCI)	1039 USD	1085USD*
Contribution of agriculture to GDP	27.5%	27.6*%
Contribution of non-agriculture sector to GDP	72.5%	72.4*%
Share of Consumption to GDP	81%	81.9*%
Gross Domestic Saving to GDP ratio	19%	18.1*%
The ratio of total national saving to GDP	48.9%	46*%
Increment in total investment	19.2%	-3.4*%
The ratio of total investment to GDP	56.6%	50.2*%
The ratio of total fixed capital formation to GDP	33.7%	28.1*%
Federal government’s expenditure	54089.73 crore	61068.07 crore
Growth in Capital expenditure	-10.8 %	6.8%
Inflation	4.2	6.5
Population having access to insurance service	19%	22%
Trade balance	+24.4 %	-4.3
Balance of payment	Rs. 58.99 billion deficit	Rs. 37.84 billion surplus
Increase in remittance inflow	23.4%	1.8%
Absolute poverty	18.6%	16.67*
People in foreign employment	4,365,415	5,041,000

Source: Economic Survey 2019/20

 You can download the pdf of economic survey of Nepal 2076/77 by clicking download here;