Monday, April 12, 2010

Is Nepalese Economy Heading for a Major Crisis?

I just finished reading this report in Nepal news: Economy heading towards crisis: Dr Mahat
This announcement has come from Former Finance Minister Dr Ram Saran Mahat. So, when someone like him says this kind of thing then we have to take it seriously. Mr. Mahat has stated some facts about the economy:
Remittance is down
FDI has decreased around one third
There is a serious liquidity crisis
Export revenue has fallen

All these are serious problems and if they continue then Nepalese economy will surely head for a major crisis. Now, the economy needs some bold initiatives from the government and this is not possible because of the ongoing political instability.
I personally think that political fighting is the major problem for the country. If political stability does not come then the economy will only continue to suffer. 

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