World Bank (WB)’s country director for Nepal Johannes Zutt said the heavy focus on politics and political discourses in the country has “crowded out” the focus on its pressing economic issues, adding that this could be a factor that is holding Nepal back.
Speaking during a media briefing on Nepal Economic Update’ in Kathmandu Tuesday, he said, “Nepal will not be able reduce its poverty level and upgrade itself into a middle income country unlessit powers its industries and businesses by focusing on economic issues.”
He said Nepal needs to focus on ‘the 3 Is’ – Investment, Infrastructure and Inclusion – if it wants to see itself making the transition from a low income country to a middle income country, and for this the country should increase public investments to do away with the huge infrastructure gaps that exists in the country. Zutt said people who have been traditionally marginalized in the country should also be assimilated politically, socially and economically.
The Nepal Economic Update prepared by the World Bank stated that after a difficult year in FY13, economic growth in Nepal is expected to recover to 4.5% in 2014.
It states that the rebound is expected to be driven by increased agricultural production and continued service sector growth supported by strong remittance inflows.
“Inflation remains high in FY14, with the average for the fiscal year expected to be around 9.8%. This year, unlike in FY13, the main driver of inflation is food prices, despite expanded agricultural production, reflecting the extent to which prices of food in Nepal are tributary to those prevailing in India,” said the WB report.
Aurelien Kruse, senior country economist of the World Bank for Nepal, also made a small presentation on the report. He said recent directives of Nepal Rastra Bank (NRB) related to directed lending is way off the mark, saying that though they were introduced with good intention they may pose a risk to country’s financial system.
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Speaking during a media briefing on Nepal Economic Update’ in Kathmandu Tuesday, he said, “Nepal will not be able reduce its poverty level and upgrade itself into a middle income country unlessit powers its industries and businesses by focusing on economic issues.”
He said Nepal needs to focus on ‘the 3 Is’ – Investment, Infrastructure and Inclusion – if it wants to see itself making the transition from a low income country to a middle income country, and for this the country should increase public investments to do away with the huge infrastructure gaps that exists in the country. Zutt said people who have been traditionally marginalized in the country should also be assimilated politically, socially and economically.
The Nepal Economic Update prepared by the World Bank stated that after a difficult year in FY13, economic growth in Nepal is expected to recover to 4.5% in 2014.
It states that the rebound is expected to be driven by increased agricultural production and continued service sector growth supported by strong remittance inflows.
“Inflation remains high in FY14, with the average for the fiscal year expected to be around 9.8%. This year, unlike in FY13, the main driver of inflation is food prices, despite expanded agricultural production, reflecting the extent to which prices of food in Nepal are tributary to those prevailing in India,” said the WB report.
Aurelien Kruse, senior country economist of the World Bank for Nepal, also made a small presentation on the report. He said recent directives of Nepal Rastra Bank (NRB) related to directed lending is way off the mark, saying that though they were introduced with good intention they may pose a risk to country’s financial system.
Source
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