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Nepal’s agrifood system structure and drivers of transformation

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Title Nepal’s agrifood system structure and drivers of transformation
 
Creator Xinshen Diao
Ellis, Mia
Fang, Peixun
Pauw, Karl
Pradesha, Angga
Thurlow, James
 
Subject agrifood systems
value chains
markets
agriculture
labour productivity
off-farm employment
poverty
diet quality
jobs
development
gross national product
 
Description Nepal experienced annual economic growth of 5.0 percent between 2009 and 2019 (World Bank 2023b). Thanks to a relatively slow population growth rate of 1.4 percent, the living standards of most Nepalis improved during this period; this allowed Nepal to graduate in 2019 from a low-income country to a lower-middle-income country. Nepal’s economy, however, was severely affected by the COVID-19 pandemic, with GDP declining by 2.4 percent in 2020 and growing only modestly in 2021. Fortunately, the country was largely spared the adverse effects of global commodity market disruptions arising from the Russia-Ukraine war that started in 2022 and from the 2023 global recession (Arndt et al. 2023; Diao and Thurlow 2023). Nepal’s GDP growth is now projected to reach 5.1 percent in 2023 and 4.9 percent in 2024 (World Bank 2023a); this suggests that the economy is resuming its pre-pandemic growth trajectory. Agriculture remains an important sector, accounting for 25 percent of Nepal’s GDP and 30 percent of its jobs. In this brief, we further unpack Nepal’s historical and projected economic growth trajectory in order to better understand the role of agriculture, and of the broader agrifood system (AFS), in the performance and transformation of its economy.
 
Date 2023-07-10
2023-08-08T09:32:57Z
2023-08-08T09:32:57Z
 
Type Brief
 
Identifier Xinshen Diao; Ellis, Mia; Fang, Peixun; Pauw, Karl; Pradesha, Angga; and Thurlow, James. 2023. Nepal’s agrifood system structure and drivers of transformation. Agrifood System Diagnostics Country Series 12. https://doi.org/10.2499/p15738coll2.136799
https://hdl.handle.net/10568/131436
https://doi.org/10.2499/p15738coll2.136799
 
Language en
 
Relation Agrifood System Diagnostics Country Series
 
Rights CC-BY-4.0
Open Access
 
Format 22 pages
application/pdf
 
Publisher International Food Policy Research Institute