Nepal’s economic growth rate to remain at 5.1pc this year: WB report

KATHMANDU: Nepal’s economic growth rate will remain at 5.1% in the fiscal year 2022/23 and 4.9% in the next FY, according to the World Bank’s latest Global Economic Prospects report. The WB's report also estimated that Nepal’s economic growth rate will be 5.8% in fiscal 2021/22. As per the WB’s estimation, the economic growth rate will be slashed not only in Nepal but also across the globe. According to the report, the global economic growth rate will be squeezed to 1.7% in the year 2023 which is 1.3% lower than the earlier estimate. Six months before or in the month of June this year, the WB had made public the estimation of global economic growth rate of 3.0%. In the year 2024, the global economic growth rate will remain at 2.7%. Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the report. High price hikes, high-interest rates and disruption in the supply chain have been identified as other causes behind the fall in the economic growth rate. The WB report further states, “The estimation of economic growth rate for the year 2023 is the third big recession in the last three decades”. According to the report, India will see an economic growth rate of 6.9% in FY 2023 and 6.6% in FY 2024. Likewise, Pakistan will witness an economic growth rate of 2.0% in the fiscal year 2023 and 3.2% in 2024. Bangladesh will have an economic growth rate of 5.2% in the fiscal 2023 and 6.2% in 2024, the WB report shows.

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Regional Outlooks East Asia and Pacific: Growth is projected to decelerate to 4.3% in 2023 before increasing to 4.9% in 2024.  Europe and Central Asia:  Growth is expected to slow to 0.1% in 2023 before increasing to 2.8% in 2024. Latin America and the Caribbean: Growth is projected to slow to 1.3% in 2023 before recovering to 2.4% in 2024.  Middle East and North Africa: Growth is expected to slow to 3.5% in 2023 and 2.7% in 2024.  South Asia: Growth is projected to slow to 5.5% in 2023 before picking up to 5.8% in 2024.  Sub-Saharan Africa: Growth is expected to slow to 3.6% in 2023 and rise to 3.9% in 2024. READ ALSO:

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