Impact of Novel Corona Virus (COVID-19 or 2019-nCoV) on Nepalese Economy

Abstract

Expert analysis shows that there is direct impact of Novel Corona Virus outbreaks on Nepalese Economy as Nepal is fully dependent on other countries and imports. The economic and social isolation cost will be higher. Country substantially dependent on remittance flow so impact will be seen till next 5 years. Labour Market and Education system have also been affected. Unemployment will be higher in tourism related industry in days to come. This is true that just calculating the impact on tourist trips, hotels, declines in retail trade, decline in remittance, close down of education centre are not enough to get the real picture of impact on economy in Nepal. There are some linkages in economy across various sectors both direct and indirect impact need to be calculated as economic shock of one nation will be directly linked to other nation in this global world. The impact illustrated through the qualitative data is far greater than the cost to a health budget of treatment of the cases involved. The more persistent shock is Corona lasting for longer than anyone hopes in this increased globalization. There is need of global monitoring and coordination mechanisms in containing both economic and microbial epidemics as the impact is higher than expected. Further study is required understanding the impact on each economic indicators in Nepal.