Deepak Malhotra Discusses Economic Slowdown and Real Estate Market
Summary
Nepal's economy remains sluggish despite positive indicators, with flood disruptions, weak consumer demand, and a stalled real estate market weighing on business activity. Deepak Malhotra says banks have ample liquidity but investment is not expanding because of caution, policy constraints, and low business confidence.
Key Points
- Deepak Malhotra says Nepal's macroeconomic indicators are strong, but the market remains sluggish because confidence among consumers and businesses has not recovered.
- He identifies the stagnation in real estate transactions as a major reason for weak demand and says policy ease is needed from the government and Nepal Rastra Bank.
- Floods, landslides, blocked highways, and global inflation have disrupted supply chains and pushed up prices, especially for mobile phones and other gadget imports.
- He says illegal mobile imports are costing the state revenue and supports implementing MDMS to curb smuggling.
