ADB projects Nepal’s GDP to fall by 4.97 percent in 2030 due to school closures

“Severe disruptions in school education during the pandemic has impacted children through their formative years which will affect their employment opportunities and earning potential for many years.”

NL Today

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Kathmandu: Nepal’s Gross domestic product (GDP) is forecast to fall by 4.97 percent in 2030 due to school closures during the Covid-19 pandemic. In a report ‘Potential Economic Impact of Covid-19-Related School Closures’, the Asian Development Bank (ADB) said GDP is forecast to fall by 0.48 percent in 2023, 1.42 percent in 2025, 4.34 percent in 2028, and 4.97 percent in 2030 as a result of the school closures.

According to UNESCO data, schools in Nepal closed for 82 weeks because of the pandemic.


As per the report, Nepal will experience the highest decline in employment among both skilled and unskilled labor in terms of percentage in South Asia. Employment of skilled labor in Nepal is projected to decline by 1.15 percent in 2025 and by 3.84 percent in 2030, while declines for unskilled labor will be one percent in 2025 and three percent in 2030.

According to UNESCO data, schools in Nepal closed for 82 weeks because of the pandemic.

“The share of unskilled labor employment in Nepal is well above other South Asian economies, so the impact looks more pronounced,” reads the report.

Severe disruptions in school education during the pandemic has impacted children through their formative years which will affect their employment opportunities and earning potential for many years after school ages, the report adds.

The report added that the most immediate challenge for governments is to help students recover “lost opportunities” by conducting assessments among impacted children.


“It is important to identify the learning gap and specific learning needs of individuals. Effective learning programs should be devised to offer appropriate support such as tutoring or special classes and help them to bridge the learning gap,” it said.

“Governments need to direct adequate funding and resources to young populations most affected by closures, such as those from the poor, rural and socially disadvantaged groups. It is important to keep school-age children in education as much as possible by providing financial support and incentives while giving additional support for skills training to youth already out of school,” it added.