April 6, 2022 | Investopaper
Asian Development Bank (ADB) has projected Nepal’s economic growth to be 3.9 percent in 2022. ADB’s projection is lower than the government’s estimate of 7 percent economic growth. In the previous year 2021, ADB had projected 2.3 percent growth for Nepal’s economy.
In the ‘Asian Development Outlook 2022’ report, the bank has stated that the economic growth will pick up gradually as economic activity returns to normal due to the global vaccination campaign against the corona epidemic.
The war in Russia and Ukraine has slowed the growth of developed countries and disrupted world trade and increased the price of oil and other commodities.
ADB has estimated that paddy production will decline by 9 percent this year due to recent unseasonal rains and floods. Likewise, the industry will grow by 4.1 percent in 2022 due to increased consumer demand and investment.
Similarly, the services sector is expected to grow by 5.2 percent due to the improvement in the wholesale and retail trade, transportation and financial services sectors. The report also states that the recession in the tourism sector in 2021 is likely to gradually improve in 2022.
According to the ADB, the current account will be under more pressure in 2022 than in 2021 due to the increase in imports and lower exports.