Kathmandu: The average income of Nepali citizens has increased at a time when the global economy is in a recession due to the coronavirus epidemic and Nepal’s economic growth is also in a phase of deflation.
According to the International Monetary Fund (IMF) per capita income of Nepalis has reached 1,115 US dollars. In the last fiscal year 2019/2020, Nepal’s economic growth rate remained stable at 0.002 percent, but the average per capita income has increased by 3.5 percent.
The average income of Nepalis in FY 2018/19 was equal to $1,078, according to the statistics provided by the IMF for Nepal.
The average per capita income is calculated by dividing the gross domestic product (GDP) of the country by the population. In Nepali currency, the per capita income of Nepalis has reached Rs. 127,827, which was Rs. 121,747 in the previous year.
On the basis of purchasing power parity (PPP), the income growth rate of Nepalis is only 0.12 percent, which was about 7.5 percent in the previous year. According to the International Purchasing Power (PPP), the per capita income of Nepalis is only $3,585, as stated by the IMF. Based on these measurements, Nepal covers around 0.079 percentage of the total world economy.
“Nepal’s growth rate has been steadily declining in the last two quarters of the fiscal year due to the Covid-19 pandemic, which has slowed the pace of growth seen in the first six months of the fiscal year,” Lara Jaramillo Meyer, head of the IMF’s Nepal mission, said in an email. In the year 2019/20, Nepal’s growth rate remained stable.