US‚ EU recession will not hit Nepal
KATHMANDU:
Economists and entrepreneurs have said that the current economic recession of United State of America and Europe will not hit the country more but marginal slash may be seen in exports and donations from the regions.
We do not have dependency on the countries affected by recession, so it will not make the country ‘’bleed to death’’, they said.
Export of carpet, Pashmina and handicrafts may decline according to the gravity of recession in America and European countries, said Suresh Kumar Basnet, president of Nepal Chambers of Commerce. Developed countries of Europe and America are the major buyers of Nepali export goods like carpet, Pashmina and handicrafts.
He suggests the government to watch out for Indian measures and act accordingly. “We have special relations–major trade partners and static exchange rate with India, so effects on the Indian economy will directly hit Nepal,” he said.
Entrepreneur Pradeep Man Baidhya opined that the current recession will not affect Nepali foreign job markets Malaysia and Gulf countries– Qatar, Saudi Arabia, the United Arab Emirates and Kuwait. “They are developing countries with high growth rate, so recession will not affect the market in the early stage,” he said.
About 3.5 million– about two million registered and same number of unregistered– Nepali are believed to be working in foreign countries. Major job markets Malaysia, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait provide jobs to around 90 per cent of them. According to Nepal Rastra Bank, the government has earned about Rs 229.52 billion in first eleven months of last year.
However, senior economist and former bureaucrat Dr Bhola Chalise said that the current recession in America and Europe could enter the Gulf region from nine months to two years that could cause severe affect in remittance dominated economy like Nepal.
“World economy is volatile since 2008, so as a small country Nepal should take precautionary measures closely observing neighbours,” he suggested, adding that the recession in America and Europe will affect aid from the region to Nepal. Countries in the Eurozone share about one-third of foreign aid to Nepal.
America also has been significantly supporting financially in development programmes.
But another economist Dr Chiranjivi Nepal assured that current recession would not affect Nepali economy, on condition that America and European countries solve the problem in three to four months. “If it goes longer, its impact will be seen in Nepal in the foreign employment sector,” he said, adding that the economy of Gulf and that of America and Europe are tied together that could lead to reduction of jobs.
Prof Dr Bishwambher Paykurel claimed that Nepal is already passing through internal recession, depression and inflation. “There is nothing to worry from the outer forces,” he said, adding that Nepal has huge unemployment, trade deficit, low gross domestic growth (GDP), almost two-digit inflation and no spending in development programmes. “Is it better than recession,” he asked.
Paykurel also suggested the government to spend on development programmes to push for economic cycle. “Economy that is largely dependent on remittance is not a healthy one and it can collapse anytime because it will increase consumption rather then generating jobs and promoting growth in the real sector, he said, adding that the government has shown no seriousness to improve investments.
Source: THT
Economists and entrepreneurs have said that the current economic recession of United State of America and Europe will not hit the country more but marginal slash may be seen in exports and donations from the regions.
We do not have dependency on the countries affected by recession, so it will not make the country ‘’bleed to death’’, they said.
Export of carpet, Pashmina and handicrafts may decline according to the gravity of recession in America and European countries, said Suresh Kumar Basnet, president of Nepal Chambers of Commerce. Developed countries of Europe and America are the major buyers of Nepali export goods like carpet, Pashmina and handicrafts.
He suggests the government to watch out for Indian measures and act accordingly. “We have special relations–major trade partners and static exchange rate with India, so effects on the Indian economy will directly hit Nepal,” he said.
Entrepreneur Pradeep Man Baidhya opined that the current recession will not affect Nepali foreign job markets Malaysia and Gulf countries– Qatar, Saudi Arabia, the United Arab Emirates and Kuwait. “They are developing countries with high growth rate, so recession will not affect the market in the early stage,” he said.
About 3.5 million– about two million registered and same number of unregistered– Nepali are believed to be working in foreign countries. Major job markets Malaysia, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait provide jobs to around 90 per cent of them. According to Nepal Rastra Bank, the government has earned about Rs 229.52 billion in first eleven months of last year.
However, senior economist and former bureaucrat Dr Bhola Chalise said that the current recession in America and Europe could enter the Gulf region from nine months to two years that could cause severe affect in remittance dominated economy like Nepal.
“World economy is volatile since 2008, so as a small country Nepal should take precautionary measures closely observing neighbours,” he suggested, adding that the recession in America and Europe will affect aid from the region to Nepal. Countries in the Eurozone share about one-third of foreign aid to Nepal.
America also has been significantly supporting financially in development programmes.
But another economist Dr Chiranjivi Nepal assured that current recession would not affect Nepali economy, on condition that America and European countries solve the problem in three to four months. “If it goes longer, its impact will be seen in Nepal in the foreign employment sector,” he said, adding that the economy of Gulf and that of America and Europe are tied together that could lead to reduction of jobs.
Prof Dr Bishwambher Paykurel claimed that Nepal is already passing through internal recession, depression and inflation. “There is nothing to worry from the outer forces,” he said, adding that Nepal has huge unemployment, trade deficit, low gross domestic growth (GDP), almost two-digit inflation and no spending in development programmes. “Is it better than recession,” he asked.
Paykurel also suggested the government to spend on development programmes to push for economic cycle. “Economy that is largely dependent on remittance is not a healthy one and it can collapse anytime because it will increase consumption rather then generating jobs and promoting growth in the real sector, he said, adding that the government has shown no seriousness to improve investments.
Source: THT
