21 October, Kathmandu. The World Bank has predicted that Nepal’s economy will grow by 5.1 percent in the current financial year. The World Bank has given this information by publishing the Nepal Development Update.
According to the World Bank, the economic growth rate in the financial year 2022/23 is estimated to be 5.1 percent. This is slightly higher than the Asian Development Bank forecast a few weeks ago. ADB estimates the economy will grow by 4.7 percent. The government has set a target of 8 percent economic growth this year through the budget.
The World Bank has analyzed that the improvement seen in the tourism sector post-Corona and the increase in power generation will contribute to the expansion of the economy due to the positive impact on the overall production sector. According to the World Bank, the level of public debt in Nepal is expected to remain stable.
It is anticipated that the pressure on foreign exchange reserves will gradually ease. According to the World Bank, the economic expansion for the next financial year is estimated to be only 4.9 percent.
The expansion of the South Asian region will average 5.8 per cent this year. In this regard, India has seen positive growth due to services sector and export trade. According to the World Bank, all countries have suffered from the effects of the Russo-Ukraine War and price pressures caused by it in one way or another.
Sri Lanka’s economy is one of the most troubled in South Asia. It is estimated that this year the country’s economy will shrink by 9.2 percent. It will decrease by 4.2 percent in 2023.
In the Nepal Development Update, the World Bank has also analyzed the impact of climate change on Nepal. Although Nepal is a negligible contributor of greenhouse gases globally, it is at the forefront of countries at risk of climate change.
According to the analysis of the World Bank, its effect will be seen more rapidly in the coming days.