Essay On Economic Situation In Nepal

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Economic situation of Nepal remains relatively stable in spite of a difficult political economic context. In 2010 the growth of GDP is estimated to be 3%, due to more difficult monetary conditions, lower remittances and bad agricultural performance. The economy of the country highly depends on the trade with India. Due the poor condition of it the inadequate supply of energy and waters and the lack of transparency in tax administration strong barriers to the country’s economic still remain same .Structural reforms are planned to response the crisis, as well as investment in infrastructures and an improvement in fiscal policy. Although Nepal is strong mainly in the hydroelectric power field, it remains a poor country with a high rate of unemployment as compare to other developing countries. In the year 2009 Nepalese GDP represented more than 50% of Foreign Trade. The country seems to be very eager to open its economy although state policies have been modified with government changes. As a matter of fact, the Nepalese government have given special interest in establishing an…show more content…
Major barriers to the development of trade, such as low level of advanced technology ,lack of skilled labour , limited domestic market, high import duties (which can reach 140%).and difficult geographical accessibility are still the greatest problem. Historically, Nepal's trade balance has been in deficit for many years. The deficit has been deepening following an increase in imports even if the exports of goods have not been greatly hurt by the global economic crisis. Main trading partners of Nepal are China, India and the USA. Nepal exports carpets, garments, jute products, leather, tea, vegetables and cereals to the India, America and Bangladesh. The country mainly imports machinery & equipment ,oil products ,and electronics from India, China and other countries as

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