Nepali economy bound to receive negative shocks: Experts

Economic experts Saturday warned that the Nepali economy is bound to reel under the yoke of the current global financial meltdown in line with the downward spiral in the country' exports, tourism sector, foreign direct investment (FDI) and remittances.

While speaking at an interaction session held at the Reporters' Club in the capital, they said, "Since the inflow of remittance is helping to buoy up the country's shaky economy, the likely jobs cuts of Nepalese in the Gulf countries due to the worldwide recession would adversely affect the Nepal's economic health."

"Nepal's economy is conspicuously remittance-driven and the probable decline in its inflow is bound to have a chain effect in the country's financial domain," stated Dr Shanker Sharma, former vice-chairman, National Planning Commission.

Senior economist Dr Bishwambher Pyakurel also echoed the same view. He further opined that the ongoing incoherence in the global economy has already begun to send negative shocks across the business community of the country.

"Nepali businessmen are being compelled to purchase goods at higher prices to sell them at a lower price owing to the sudden price decline seen in
recent days," Dr Pyakurel said.

Expressing serious concern over the debilitating repercussions of the global financial mess on Nepal's economy, other prominent speakers of the programme prescribed the government to adopt appropriate measures to insulate the country's economy. nepalnews.com nd Dec 07 08