Globally, the pandemic has been considered as one of the most severe health and economic crises of the twenty-first century and Nepal has not been an exception. In the case of Nepal, with three waves of the pandemic – one in 2020 and two in 2021 – accompanied by strict nationwide lockdown (Wave I), extended restrictions on business and travel activities during the second and third waves of the pandemic, COVID-19 stalled the country’s most key economic sectors, including business activities, hospitality, tourism and education among others.
Finally, the pandemic has subsided a bit in recent months and more people are getting vaccinated. its positive impact on the country’s economy could be felt. For reference, ADB’s Sept 2021 Nepal Macroeconomic Update7 highlights some of the encouraging growth trends for Nepal. As per the updates, Nepal has been expected to witness GDP expansion by 2.3 percent in FY 2021 after contracting by 2.1 percent the preceding year. For FY 2022, GDP is expected to expand to 4.2 percent. Similarly, inflation has moved around 3.6 percent in FY 2021, down from 6.2 percent the year earlier.
