Economic growth to fall

December 20, 2001
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December 20, 2001

KATHMANDU: Nepal’s economic growth in the fiscal year 2000 will be half of six percent after an extremely difficult year, the Asian Development Bank ADB) said Thursday. Growth the pervious year stood at less that five percent.

“Clearly, 2001 has been an extremely bad year for Nepal, perhaps the most difficult year since the restoration of multi-party democracy in 1990,” Dr. Richard Vokes, the Bank’s resident representative said.

The June 1 royal family massacre, the worsening of communist insurgency, the state of emergency and the September 11 terror attacks in the USA affected the Nepali economy.

“This (royal massacre) was not only an immense shock to the people but also had negative impacts on the economy,” the ADB said. “While the immediate prospects are not good, the potential for a strong recovery in the medium-to-long run certainly exists,” the Bank said.

“The Bank will continue to support and maintain current operations,” Vokes said. ADB approved loans to Nepal in 2001 totaling $95.6 million in addition to a $4 million technical assistance and a $800,000 grant to support poor and disadvantaged farmers.