Impacts of Covid-19 in Nepalese and global economy

KATHMANDU: Due to Covid 19 pandemic, country-wide lockdown came into effect on 24 march 2020. After lockdown was imposed all retail stores expect for the basic goods were closed. Retail stores are one of the most important medium in economy as it creates bridge between producers and consumers.

So, simultaneously industries turnover got decreased, when retail stores were closed. Supply chain of almost every sector were disturbed. Tourism industry which was one of the most important sector of Nepalese economy, that stood 7.9 percent of countries GDP and supported 1.05 million jobs, had completely stopped its operation during first lockdown.

Without a question, the pandemic has had a significant impact on all types of enterprises. Due to the impact on worldwide supply and demand of both goods and services, many entrepreneurs and start-ups saw a significant drop in revenue. These changes may have a negative impact on new entrepreneurs in the future, or they may have a good influence and serve as a learning opportunity, according to some.

Borders were locked in nations with a higher number of cases to prevent the virus from spreading, and large lockdowns were implemented in Italy, California, New York, and the United Kingdom. As further efforts were made to implement social distancing, numerous businesses around the world were forced to close or limit their interactions, resulting in considerable economic losses.

Since he commerce community is frequently connected globally, being unable to speak with vendors was a severe problem for a company with a supply chain in China. Because China has the largest market for industrial goods due to its cost-effectiveness, not only small business owners encountered issues, but large-scale industries also encountered regulatory and legal issues.

Almost all the sectors of Nepal’s economy have been badly hit by the pandemic. The government had lowered the country’s growth forecast to 2.3 per cent due to Covid-19. This is much below Nepal’s growth rate in 2018 and 2019.

A study conducted by Ganesh Man Singh Academy has estimated that due to Covid-19 and the subsequent lockdown, Nepal has been losing NRs10 billion (S$11.58 million) per day.

As a result of this pandemic, between 500,000 and 600,000 migrant workers are expected to return to Nepal. It is also estimated that between 10 and 30 per cent of the jobs held by Nepalese in the Gulf countries and Malaysia have been lost. This will affect remittances which, as projected by the Central Bureau of Statistics, may decline to around 19.01 per cent of the country’s GDP.

A slump in the economy affects employment. According to a study by the National Planning Commission, it is estimated that more than six million people will be unemployed because of the pandemic

We’ve seen incredible ways taken by firms to adapt their operations to suit with our new way of life, and we’ve seen amazing ways adopted by firms to convert their operations to suit with our new way of life so far. We must recognize the community’s new demands and provide services and items that complement the new normal. We are all aware that things will be different in the post-Covid world.

Author: Pranab Jung Pandey, BBA- 1st Semester Student of Kathmandu University School of Management

Pranab Jung Pandey |
Sunday May 30, 2021, 01:49:39 PM |

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