Quake also devastates impoverished Nepal's economy

Nepal, one of Asia's poorest countries, faces a crippling multi-billion dollar post-quake reconstruction bill that will set it back years, just as its economy was looking up after a decade-long civil war.
Saturday's powerful quake devastated much of the capital Kathmandu and killed more than 3,200 people in Nepal's deadliest disaster for more than 80 years.
Racked by political instability since a deadly war with Maoist rebels ended in 2006, earthquake-prone Nepal must now cope with the added burden of a massive rebuilding effort that its shattered economy will not be able to afford on its own.
"The Nepal earthquake has had a devastating impact on the economy of Nepal, which is a very poor nation and has extremely limited capacity to finance relief efforts and reconstruction from their own resources," said Rajiv Biswas, Asia-Pacific chief economist at business research firm IHS.

"The total long-term cost of reconstruction in Nepal using appropriate building standards for regions vulnerable to severe earthquakes could exceed USD 5 billion, which is around 20 per cent of Nepal's GDP," he added in a note.
"Massive international disaster relief and rescue efforts will be needed urgently, as well as large-scale international financial and technical assistance for long-term reconstruction of the economy," Biswas said.

Nepal has an annual per capita GDP of only USD 1,000 per person, according to IHS, with many families living in poverty -- relying on agriculture and increasingly tourism to make ends meet.
Agriculture is the economy's biggest sector, employing over 70 percent of the population and contributing 33 per cent of GDP, according to the trading economics website.

Saturday's quake, the strongest to hit Nepal since 1934 when 10,700 people were killed, ripped apart infrastructure, destroying roads and buildings and paralysing communications.
Asian Development Bank official Hun Kim estimated that 40 per cent of the country was affected.
"On a personal level, people have lost their houses and assets. The government will have to quantify the loss of infrastructure," Kathmandu-based economist Bishamber Pyakurel told AFP, describing the impact on the economy as "grave".
"The growth rate of the country will be hit. Agriculture contributes over 30 percent of our GDP and with 36 districts affected, it is unlikely that our growth projections will be met. Difficult times are ahead," Pyakurel said.