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Nepal: Economic Situation

Question for Department for International Development

UIN 12847, tabled on 21 October 2015

To ask the Secretary of State for International Development, what assessment her Department has made of the economic recovery in Nepal since the earthquake in April 2015.

Answered on

28 October 2015

The Nepal government estimates that GDP reduced by 1.5% as a result of the earthquake. Economic recovery has been slow and uncertain.


Delays setting up the National Reconstruction Authority and unrest in the border area with India, which has closed most border crossings for over 6 weeks, make economic recovery challenging. We are pressing the government to prioritise the post-disaster response.


The UK is providing up to £35 million for technical assistance to the Government of Nepal to directly mobilise more than £600 million of private investment into growth-boosting sectors, such as export-focused hydropower projects, indirectly generating better-paying jobs for unskilled and low-skilled Nepalese. The UK is also investing in building and maintaining roads to improve access in Nepal.