Nepal’s incoming government will be unstable
Friday, February 2, 2018
Subject
Nepal's post-election outlook.
Significance
Elections for Nepal’s parliamentary lower house produced a decisive result in favour of a leftist alliance, but the formation of a new government has been delayed. The winning communist parties are struggling to agree on a merger and face several policy tests.
Impacts
- India-China rivalry is set to rise in Sri Lanka, with Delhi and Beijing looking to increase investment.
- Nepal’s GDP growth in fiscal year 2017/18 (July-July) may be less than 5%.
- Kathmandu may seek to step up its trading relations with ASEAN states.
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