AEIR 2018

The economic recovery after the devastating earthquake in 2015 is well underway with growth rebounding to 7.4% in fiscal year (FY) 2017, brought by normalized trade flows, favorable monsoon and expansive fiscal policy. The growth in paddy production of 21% eased inflationary pressures. Fiscal policy was largely expansionary, funding recurrent and capital expenditures.

The economy is likely to grow by 5.9% in FY2018 due to rapid expansion of government expenditure, which in turn catalyzed a marked pickup in industry, mostly in manufacturing and construction. Primary risk to outlook is the possible substantial fall in remittances as reflected by the expansion of trade deficit.

Source: Asian Development Outlook 2018, and Asian Development Outlook 2018 Update, ADB.
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 4.6 (Jul18)4.1 2.7
Industrial/ Manufacturing Production Growth Rate 1 9.2 (Jan18)35.7 0.0
Merchandise Export Growth 1 -16.9 (Nov18)-16.9 17.5
1 y-o-y, %.
Source: CEIC database.

Initiatives / FTAs