Buoyant Economy

Despite all odds, Nepal's economy is on the recovery track. However, it is fraught with multiple challenges that must be overcome to make it strong and sustainable. The domino effect of the COVID-19 pandemic still lingers, as seen in the closures of commercial spaces in different parts of the Kathmandu Valley. At the moment, the country's foreign reserves are satisfactory but an import- and remittance-driven economy is always susceptible to any internal and external shocks. The global economy is under a big stress with the protracted Russia-Ukraine war that pushed energy prices in developed economies to an unprecedented level. Now it is getting jittery with the tariff war waged by the incumbent US administration. Major economies are caught in an irrational spike in tariffs, whose repercussions are also felt in Nepal. Failure to end the trade impasse is sure to slow down global economic growth, with the poor and developing nations feeling the heat.