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Showing posts from April, 2025

Credit Boom Gone Bust

                                              It has been more than two years since the Nepalese economy has faced unique challenges, as macroeconomic indicators such as inflation, liquidity, interest rates, foreign exchange position, balance of payments, remittance inflow, and tourist arrivals are all supportive of economic growth. Still, the aggregate economic activities remain sluggish with subdued domestic demand and lending from the banking system, growing pressure on the government's fiscal position, increasing youth out-migration, and growing pessimism in almost every sector of the country. The inability of the government to make timely and effective capital spending can be attributed to this economic slowdown, as it has, over the period, remained the major issue concerning the economic growth of Nepal. Ho...