AEIR 2017

Devastating earthquakes, monsoon and trade disruptions led to a slowdown in growth in FY2016, but for FY2017 GDP growth exceeded forecasts at 6.9%. The economy is expected to grow only at 4.7% in FY2018 due to excessive rains, which will affect agriculture and reconstruction projects of the government. The slow growth in remittances, which is a major source of foreign exchange, contributes to current account deficit. In order to sustain high rates of economic growth, higher investment and boost in the manufacturing and services sectors are needed. Fixed capital formation in the country has languished below 30% and the manufacturing and services sector are either shrinking or stagnant.

Source: Asian Development Outlook 2017 Update, ADB.
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 6.0 (Mar18)5.0 2.9
Industrial/ Manufacturing Production Growth Rate 1 15.3 (Jul17)0.0 0.0
Merchandise Export Growth 1 15.1 (May18)15.1 -9.7
1 y-o-y, %.
Source: CEIC database.