KATHMANDU: Nepal’s gross domestic product (GDP) in the current fiscal 2021/22 is projected to limit at 3.9%, according to the World Bank’s Global Economic Prospects report launched on Wednesday.
The projection is based on the Covid 19 vaccine coverage, growth in agricultural productivity and improvements in the service sector.
The report points out the possibility that fresh threats from Covid 19 variants and a rise in inflation, debt, and income inequality could endanger the recovery in emerging and developing economies. Likewise, some South Asian countries in course of an economic rebound face the risk of another wave of Covid 19.
The report projects that global growth is expected to decelerate markedly from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.