Kathmandu, April 6
The Asian Development Bank (ADB) has projected Nepal’s economic growth (gross domestic product growth) rate to be 3.9 per cent for the fiscal year 2021/22.
In its latest update made public on Wednesday, the bank projected the rate much lower than the government’s 7 per cent target. However, it is equal to the World Bank’s projection.
Growth is expected to rebound on the back of the ongoing vaccination campaign against the Covid pandemic to control infections, fostering a gradual normalisation in economic activity and a steady path to higher growth supported by accommodative macroeconomic policies, the bank says.
“However, slowing growth in advanced economies exacerbated by the Russian invasion of Ukraine, along with disrupted trade flows and higher oil and other commodity prices, is expected to push inflation and may exert further pressure on Nepal’s balance of payments and foreign exchange reserves,” ADB Nepal Country Director Arnaud Cauchois says.
