Kathmandu, January 1
While the government is saying that the economy has improved, a study conducted by the Confederation of Nepalese Industries (CNI) has shown that the country’s economy is still in trouble.
According to the survey conducted by CNI, the overall demand in the market has decreased by 36.93 per cent compared to two years ago. A decrease in demand means a decrease in consumption of goods and services.
The study of the CNI has shown that the economy has not improved in the first quarter of the current fiscal year, even though there was a sharp drop in demand in the previous fiscal year as well.
“The study revealed an increase in the price of raw materials. In comparison to 2021/22, the demand witnessed a significant decrease of 36.93 per cent,” said President of the Confederation, Rajesh Kumar Agrawal, during the report release. “There has also been a decline in business by 30.54 per cent.”
CNI conducted a survey last year to assess the country’s economic condition. The second edition of this survey compares the first quarter of the current financial year with the previous one, providing valuable insights, he said.
The survey, which compared the first quarter of the last three financial years, revealed a 28.28 per cent decrease in the overall market demand for industrial products in the previous year. In the same period of the current financial year, this decline has further deepened by 12.06 per cent. Consequently, the overall demand for industries in 2023/24 has contracted by a total of 36.93 per cent compared to the same period in the financial year 2021/22, according to the survey conducted by CNI.
