June 9, 2022 | Investopaper
The World Bank has projected that economic growth rate of Nepal will be 4.1 percent in the fiscal year 2022/23. According to the ‘Global Economic Prospects’ report released by the bank, the estimated growth rate has been reduced by 0.2 percentage point from the previous projection.
Similarly, World Bank has projected Nepal to achieve a growth of 5.8 percent in the next year 2023/24. Nepal, on the other hand, has set a growth target of 5.84 percent for the fiscal year 2078/79 and 8 percent for the fiscal year 2079/80.
Looking into the South Asian region, the bank has reduced the projected growth by 0.8 percentage point to 6.8 percent. Previously, South Asia’s economic growth was estimated at 7.22 percent for 2022/23.
Maldives is projected to have the best economic growth rate in South Asia. The economy of Maldives is projected to grow at 7.7 percent in 2022, 10.2 percent in 2023 and 7.1 percent in 2024.
India is projected to grow at 7.1 percent in 2023/24. Bangladesh will grow at 6.9 percent, Bhutan at 6.7 percent and Pakistan at 4 percent.
Rising current account deficit, rising prices of food and other consumer goods, lack of chemical fertilizers in the agricultural sector, disruption in supply of food items including wheat and energy crisis are expected to slow down the economic growth rate.