CNI Study Contradicts Government Claims, Exposes Continued Economic Challenges

Despite government assertions of economic improvement, a recent study conducted by the Confederation of Nepalese Industries (CNI) challenges the narrative, revealing a concerning 36.93% decrease in overall market demand compared to two years ago.

President of the Confederation, Rajesh Kumar Agrawal, presented the findings during the release of the report, emphasizing the critical implications of the study. According to Agrawal, the survey indicates that the economy has not shown signs of improvement in the first quarter of the current fiscal year, despite a significant drop in demand observed in the previous fiscal year.

The CNI survey disclosed various alarming trends, including a notable increase in raw material prices, contributing to a substantial decline in demand for goods and services. “There has also been a decline in business by 30.54%,” Agrawal highlighted.

This study marks the second edition of CNI’s annual assessment of the country’s economic condition, comparing the first quarter of the current financial year with the previous one. Last year’s survey already pointed to economic challenges, and the latest edition provides further insights into the persistent struggles faced by the nation.

A comparison of the first quarters of the last three financial years revealed a 28.28% decrease in the overall market demand for industrial products in the previous year. Alarmingly, this decline has deepened by an additional 12.06% in the same period of the current financial year. Consequently, the overall demand for industries in 2023/24 has contracted by a total of 36.93% compared to the same period in the financial year 2021/22, as highlighted in the CNI survey.

The findings challenge the optimistic outlook presented by the government, shedding light on the ongoing economic challenges faced by Nepal. The decrease in demand implies reduced consumption of goods and services, posing potential long-term consequences for the country’s economic recovery. The CNI’s comprehensive analysis serves as a crucial tool for policymakers and stakeholders to address the underlying issues hindering economic growth.