Manufacturing Industry Capacity Utilization Declines
Summary
Nepal’s manufacturing industries are operating at only 42.1 percent of capacity in the first six months of fiscal year 2082/83, the lowest level since the earthquake and COVID period. Nepal Rastra Bank says capacity utilization has been steadily falling in recent years amid weaker market demand and competition from imported goods.
Key Points
- Nepal’s manufacturing industries recorded average capacity utilization of just 42.1 percent in the first six months of fiscal year 2082/83.
- The central bank says this is the lowest level since the earthquake and COVID period, and the trend has been declining for several years.
- Capacity utilization fell from 49.8 percent in fiscal year 2079/80 to 48.3 percent in 2080/81 and 44.5 percent in 2081/82.
- Officials attribute the decline to contraction in market demand, Nepal’s demographic situation, and competition from imported goods.
