The Economic impact of Nepal's earthquake

The Economic impact of Nepal's earthquake

Nepal is wedged between two giant economic superpowers, with homeland of largest mountain peak in the world, but it is one of the poorest countries in the world as well.

The magnitude 7.9 earthquake struck some 80km northwest of the capital Kathmandu and has affected eight million people and 8,500 peoples lost their life. And yes certainly, Nepal has to face great economic impact in time run, Corruption is rife and it is politically unstable. Nepal’s future seems uncertain.



According to +US Geological Survey the economical losses could be much as $10bn and cost of rebuilding is $5bn according to +IHS . This is the great loss for Nepal which having 40 percent unemployment rate, many people living eking out living agriculture and trading. Economic growth was already slow. 

Now, here rise big questions what will be the next? 

Nepal’s GDP per capita was only $694 in 2013. Earthquakes have had small effect on GDP growth and long term GDP for countries which are affected. Some economist said,
 “If problem couldn't function well then there will be great loss for nation. Beside money human knowledge, transparency and well functioning government plays outstanding role”. 

Nepal runs a large trade deficit and relies on tourism and remittances for foreign exchange. The Nepalese rupee, which is pegged to India’s currency, was under pressure even before the earthquake, sparking inflation.  

“In every darkness, there’s a light. In every struggle, there’s a way. In every faith, there’s a hope”.

Now it’s time to act, help and grow together to bring smile in their faces. If it could be done Nepal could be much better off in 3 months and can consider in travel itineraries!

+Saujan Gyawali is currently First Year Site License Program in +The New York Times and also a student of business administration who loves writing on economic and business issues along with development stories.


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