Nepal’s economic indicators improve after lockdown relaxation

KATHMANDU - Some of the economic indicators of the Nepali economy improved as the government gradually started to relax the lockdown since mid-May, statistics of Nepal’s central bank showed.

On July 20, Nepal’s cabinet decided to end the nearly fourmonth long lockdown by keeping a few restrictions in place. The lockdown was imposed on March 24 suspending almost all the economic activities to prevent the spread of COVID-19 which has so far killed 42 people and infected over 18,000 others in Nepal as of Wednesday, according to

Nepal’s Ministry of Health and Population. According to the central bank’s statistics, the Nepali government’s expenditure, revenue collection, remittance inflow, export and imports and travel income all saw growth during the period from midMay to mid-June compared to the previous months when the lockdown was imposed. May is the 11th month of last fiscal year 2019-20 which ended on July 16.

“The improved economic indicators reflect increased economic activities in the country after the lockdown was gradually relaxed,” Gunakar Bhatta, spokesperson at the central bank told Xinhua early this week. “After the end of the lockdown, the service sector, which has been hit hard by the pandemic, is expected to contribute to the economy.” The Nepali government had first decided to relax lockdown for 44 sectors in early May, opened most of the sectors for operation in early June and finally decided to end the lockdown fully on July 20. These relaxation of the lockdown over the last two months helped the economic activities to pick up, according to Bhatta. According to the Nepali central bank statistics, the Nepali government’s expenditure grew to 1 billion US dollars during mid-May to mid-June, from 715 million US dollars in the previous month. Likewise, the Nepali government revenue collection also grew to 343 million U.S. dollars in the 11th month of last fiscal 201920 compared to 134 million U.S. dollars in the 10th month. Despite continued globally supply chain disturbance due to the pandemic, Nepal’s exports rose to 49 million US dollars in the 11th month of last fiscal year compared to 28 million US dollars in the 10th month. (Xinhua )