KATHMANDU: As the
government and other agencies have been paring down the forecast for
Nepal´s economic growth to 3.56 percent, the United Nations Economic and
Social Commission for Asia and the Pacific (UNESCAP) has Thursday said
growth would be maintained at 4 percent for the current fiscal year.
"A more realistic growth projection would be about 4 percent," reads a UNESCAP statement released here on Thursday. The UNESCAP, releasing its annual report on ´economic and social survey of Asia and Pacific 2013´, said political instability, frequent strikes and persistent labor problems, and severe power shortage are major reasons for low growth.
The report also touched the inflation of the country. "Inflation in Nepal is closely linked to inflation in India because of the fixed exchange rates between the currencies of the two countries," it said.
UNESCAP has highlighted labor shortage in the domestic market of Nepal and recommended some policy measures to take in order to accelerate economic growth. "In order to realize its development potential, Nepal will have to overcome a number of development challenges such as infrastructure gaps and energy insecurity," reads the report.
Similarly, UNESCAP has suggested the government address some deepening problems like poverty, hunger, and rising inequality, among others. "The services sector of the country is having a faster growth compared to other sectors of the economy," the report outlines. "South Asian countries face growing energy demand, and a number of energy challenges."
Meanwhile, there are some suggestions in the macro economic policy front of Asia Pacific countries. "A job guarantee program, a universal and non-contributory pension for all aged 65 or older, increasing public expenditure in health sector and addressing energy problems required to be managed through macro economic policy adjustments in the economy," highlights the report.
Source: myrepublica, 18th April 2013
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"A more realistic growth projection would be about 4 percent," reads a UNESCAP statement released here on Thursday. The UNESCAP, releasing its annual report on ´economic and social survey of Asia and Pacific 2013´, said political instability, frequent strikes and persistent labor problems, and severe power shortage are major reasons for low growth.
The report also touched the inflation of the country. "Inflation in Nepal is closely linked to inflation in India because of the fixed exchange rates between the currencies of the two countries," it said.
UNESCAP has highlighted labor shortage in the domestic market of Nepal and recommended some policy measures to take in order to accelerate economic growth. "In order to realize its development potential, Nepal will have to overcome a number of development challenges such as infrastructure gaps and energy insecurity," reads the report.
Similarly, UNESCAP has suggested the government address some deepening problems like poverty, hunger, and rising inequality, among others. "The services sector of the country is having a faster growth compared to other sectors of the economy," the report outlines. "South Asian countries face growing energy demand, and a number of energy challenges."
Meanwhile, there are some suggestions in the macro economic policy front of Asia Pacific countries. "A job guarantee program, a universal and non-contributory pension for all aged 65 or older, increasing public expenditure in health sector and addressing energy problems required to be managed through macro economic policy adjustments in the economy," highlights the report.
Source: myrepublica, 18th April 2013
You might also like:
Registration of new firms in Nepal doubles
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