ABSTRACT
Real growth in Gross Domestic Product (GDP) has fluctuated widely in Nepal in recent years (Table 5.1). Its first development plan (1954–5 to 1960–1) produced no appreciable increase in per capita income which, by 1987/8, had reached only US$170, one of the lowest in the world. After fiscal expansion in the early 1980s which proved inflationary, a period of stabilization was followed by a World Bank-supported structural adjustment programme in 1987. This was producing promising results until the March 1989 breakdown in the negotiations for renewal of trade and transit treaties with India. Although the resulting physical disruptions to trade were short-lived, increases in the tariffs applied to goods imported through India contributed to inflation and to a severe deterioration in public sector finances. Nepal: recent economic indicators
|
1986–7 |
1987–8 |
1988–9 |
1989–90 |
1990–1 |
|
|---|---|---|---|---|---|
|
Real GDP growth % |
2.7 |
9.7 |
1.5 |
−2.2 |
3.0 |
|
Population growth % a |
2.6 |
2.5 |
2.5 |
2.6 |
2.6 |
|
Growth in GDP per capita % |
0.1 |
7.2 |
−1.0 |
−4.8 |
0.4 |
Based on Central Bureau of Statistics, Population Projections of Nepal 1985–2000
