In recent years, the Nepali economy has faced a deep economic slowdown, sluggish market dynamics, and structural impediments, causing serious concern among policymakers, economists, entrepreneurs, and the general public. The prolonged decline in demand for consumer goods, a significant drop in capacity utilization in manufacturing industries, excess liquidity in the banking sector, and a widespread decline in private sector morale necessitate a debate on whether Nepal's economy is technically in recession or undergoing long-term economic stagnation.
Against this backdrop, it is imperative to analyze the various trends of Nepal's current economic situation, understand the underlying structural causes, assess its long-term impact on the economy, and identify solutions.
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