Monday, May 11, 2015

Impact of the Earthquake in Nepal on Currencies - 4.26.2015

“Gorkha earthquake”, better known as the Nepal earthquake that killed about 7,000 people and injured more than 16,000 people, devastated the core of Nepal. 

Food, shelter and clothes the basic amenities of any human were shattered into prices. Houses were lost, public monuments were scattered and people lost their life which made this the biggest natural calamity that Nepal had even seen. This earthquake affected different parts of Nepal starting from Kathmandu including other parts like the Bhaktapur Durbar Square, Pantan Durbar Square and other age old cities of Nepal. 

How Did This Affect The Economy of Nepal?

The destruction of 4.26.2015 was a major concern to the world, because this even affected the world of trading to a greater extent. Lot happened for the economy of Nepal, recorded with the GDP $19.921 billion dollars (one of the poorest country in Asia), hence it does not have much ability to fund major reconstruction works. In fact, even before the Gorkha earthquake took place, the Asian Development Bank disclosed that Nepal would four times more GDP annually by 2020 to get optimal investment. 

The US Geological Survey estimated that over 9% loss was encountered to the 50% Gross Domestic Product of the country, and the best estimate is that it can increase to over 35%. However, Asian Development Bank (ADB) said that “It is not easy to estimate the accurate amount at this point, yet surveys are being carried out for achieving an adequate percentage. 

An official of ADB even comprehended to the fact that about 3 million USD grant to Nepal is curial for the immediate relief phase and later about 200 million would be needed for rehabilitation and restoration processes. Experts say that Nepal will needed efforts from international countries so that it can make its way back with an amazing GDP. 

Predictions Made For the Future 

This is one of the most immediate economic tolls for Nepal which has drastically affected the major economic sector of this country which is tourism. By last year, travel and tourism had contributed to over 10% of the country’s GDP which is about $677 million dollar. However, this economic sector has now seen a sudden decline which is going to affect the GDP as well. 

But, the good thing is that different countries like China, India, Pakistan, US, Afghanistan and Saudi Arabia are coming together to establish a strong network for helping Nepal to stabilize its economy. 

Steps to Control the GDP of Nepal

For the time, economic sectors are something that can turn the current picture of Nepal. This is the reason why government is focusing on empowering its economic sector. This will be done by using the relief funds for reconstruction processes at different heritage sites embraced by the UNESCO. Other than that, funds will even be used for improving the industrial sector so that slowly yet steadily the currency of Nepal can gain its value back. 

In a span of ten years, Nepal wishes to get its place back and rather better than before so that even it can come out as an economically advanced country of Asia.