Macroeconomic Indicators of Central Government of Nepal

Macroeconomic-indicators-of-federal-state-of-nepal

MACROECONOMIC INDICATORS OF THE CENTRAL GOVERNMENT OF NEPAL:

1. Economic Growth Rate: Economic Growth is the increase in value of real GDP or the increase in output over a period of time. From the FY 2018/19 onwards GDP is also measured province-wise. Among the 7 provinces, the growth rate of Sudurpaschim is the highest (4.1) and that of the Bagmati is the lowest (1.2). However, Bagmati has the highest contribution (35.8%) on the total GDP and Karnali province has the lowest contribution (4.3%) in FY 2019.

2. Poverty: According to the economic survey 2018/19, out of the total population 18.7% lives in absolute poverty. The highest population living under absolute poverty is in Sudurpaschim. 33.9% of the total population in Sudurpaschim lives in absolute poverty and it should also be noted that out of the total population only 9.6% of the population lives in Sudurpaschim. The lowest number of population living under absolute poverty is in Province One. 12.4% of the total population in Province One lives in absolute poverty.

3. Inequality: It refers to the unequal distribution of income or wealth among individuals. It is also known as the gap between rich and poor. Inequality is measured with the help of the Gini Coefficient whose value ranges from 0 (means no inequality) to 1 (means perfect inequality). According to the economic survey 2018/19, the Gini Coefficient of Nepal is 0.3. Out of 7 provinces, province one, Gandaki and Karnali have a value of 0.4 and the lowest is province two with a value of 0.2.

4. Unemployment: It refers to a situation where a person is willing and able to work but is unable to find any job. As per the economic survey, the unemployment rate of Nepal FY 2018/19, the highest level of unemployment was in province two with a 20.1% level of unemployment. Province three had a 7% unemployment rate which was the lowest among the 7 Provinces.

5. Life Expectancy: It is the average number of years that a person is expected to live. The average life expectancy of Nepal according to the economic survey FY 2018/19 was 69.7. Out of seven provinces, Gandaki has the highest life expectancy with a value of 71.7 years. Karnali has the lowest with 66.8 years.

*FY = Fiscal Year*

The major macroeconomic indicators of the Federal State of Nepal can be represented by the help of the following schedule:

Table: Macro Economic Indicators of the Federal State of Nepal

Economic Indicators of Nepal

Fiscal Years

2018/19

2019/20

2020/21

GDP at basic Price (In Billion Rs.)

2921

3209

-

GDP Growth rate (In Billion Rs.)

6.75

2.27

2.7*

GNP (In Billion Rs.)

3498

3810

-

PCI in GNI (In US$)

1051

1097

1165*

Rate of Inflation (In Percent)

4.2

4.6

6*

Trade Balance as the ratio with GDP

-38.2

-37.59

-

Net Outstanding Public Debt Ratio with GDP

30.3

39.22

43.7*

Source: Economic Survey, 2019/20, statista.com

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