Opinion | Accelerating the growth path
Summary
Nepal's economic growth remains subdued compared to neighboring China and India, with recent low investment levels and productivity challenges hindering progress. Boosting investment, technology adoption, and productive capacity are key to accelerating Nepal's growth trajectory.
Key Points
- Nepal's average annual economic growth over the past 50 years has been only 4.3 percent, lagging behind its neighbors China and India.
- Post-earthquake reconstruction and federalism initially supported growth, but investment and growth momentum declined after Covid-19.
- Investment as a share of GDP has dropped from around 30 percent to 24 percent in recent years, signaling slow future growth.
- Nepal needs to focus on enhancing productivity through technology adoption, diversifying growth drivers, and implementing modern industrial policies.
