COVID-19 stymies poverty alleviation

The poverty rate in Nepal hovers around 18.6 percent in 2018/19 (15th Plan, NPC). The multidimensional poverty stands at 28.6 percent. Historically, poverty in Nepal stood at 42 percent in 1995/96, 31 percent in 2003/04, and 25.2 percent in 2010/11 (NLSS – I, NLSS – II, & NLSS – III).
The preliminary estimate by CBS (2020) projects economic growth of 2.28 percent for FY 2019/20, which translates into a fall in real per capita GNDI growth of 6.8 percent. Consequently, about 1.15 percent (335 thousand people) of the total population (29.96 million) expected to break through the poverty trap will fail to come out of the trap. The economic growth of 2.28 percent is higher than the population growth of 1.35 percent, so the falling of GDP growth rate does not increase the poverty, however, it retards the rate of decline in poverty.

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