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 4.7 (Oct18)3.9 3.1
Industrial/ Manufacturing Production Growth Rate 1 7.9 (Jul18)8.0 0.0
Merchandise Export Growth 1 28.6 (Mar19)28.6 6.5
1 y-o-y, %.
Source: CEIC database.

Initiatives / FTAs