World Bank forecasts 6.4 percent economic growth this fiscal year
December 13, 2019 | Investopaper
The World Bank has projected the Nepalese economy to grow at 6.4 percent in the fiscal year 2019-20. The government has previously set the target of 8.5 percent for the year. Likewise, the World Bank has forecasted an average annual growth rate of 6.5 percent in the medium term. In doing so, the bank has considered the investments in the tourism sector with the arrival of the Visit Nepal Year 2020 as well as the efforts to increase air connectivity.
The World Bank released Nepal Development Update and revealed that the industrial growth will be supported by the investment in cement and hydropower sectors, construction activities, improved capacity utilization in the manufacturing sector, etc. which will surely strengthen the growth. Likewise, the import growth will slow down that will help reduce the trade deficit. By assuming stable agricultural production, regular supply of electricity and low inflation in India, inflation is expected to remain below five percent during this period. Foreign investment must be prioritized by the government. On the other hand, exports must be increased.
Finance Minister Yubaraj Khatiwada said the need for Nepal is data that is disaggregated, more frequent, reliable and accessible. “Nepal’s federal structure has added another dimension for data at the provincial level, which is a challenge but very important for development programs to leave no one behind.
