The Crossroads of Resilience and Vulnerability: Where is Nepal’s Economy Headed?
The Crossroads of Resilience and Vulnerability: Where is Nepal’s Economy Headed? If you examine Nepal's macroeconomic numbers on paper, you encounter a paradox. On one hand, external reserves are near historic highs, the current account is sitting in surplus, and remittance flows continue to shatter records. On the other hand, domestic businesses face subdued consumer demand, young professionals and laborers are lining up for work permits at Tribhuvan International Airport, and public capital expenditure remains sluggish. Where exactly is Nepal's economy going against the backdrop of shifting global realities and domestic structural challenges? 1. The Global Backdrop: External Pressures & Opportunities Nepal does not exist in an economic vacuum. Several international trends shape its domestic trajectory: Geopolitical Volatility & Energy Shocks: Ongoing conflicts across the Middle East and Eastern Europe periodically disrupt supply chains and put upward pressure on...