Kathmandu, March 31
The World Bank has projected Nepal’s economy will achieve a growth rate of 2.7 per cent growth rate this fiscal year that ends mid-July 2021.
The bank had estimated in October 2020 and January 2021 that Nepal’s growth rate would stand at 0.6 and 1.4 per cents respectively. However, the recovery could be quite quick thanks to the early availability of the Covid-19 vaccines, the bank says in a twice-a-year regional update published today.
But still, the revised growth rate is also way below the government’s target of 7 per cent.
The report highlights the entire South Asian region is rebounding.
“The health and economic benefits from vaccinations greatly exceed the costs involved in purchasing and distributing vaccines for all South Asian countries,” said Hans Timmer, World Bank Chief Economist for the South Asia Region, in a statement today. “South Asia has stepped up to vaccinate its people, but its healthcare capacity is limited as the region only spends 2 per cent of its GDP on healthcare, lagging any other region.”
“The main challenge ahead is to reprioritise limited resources and mobilise more revenue to reach the entire population and achieve full recovery.”