Nepal faces inflation risk from Red Sea disruption

Escalating tensions in the Red Sea due to attacks by the Houthi rebels, according to reports, may hit South Asian economies, including Nepal.

Experts say that Nepal, an import-driven economy, may see the impacts in two ways.

First, rising shipping costs to export goods.

Second, as Nepal’s imports are dependent on India, and as the southern neighbour is already experiencing increased expenses for ships, there will be a shared burden of the rising costs.

Paras Kharel, executive director of South Asia Watch on Trade, Economies and Environment…