KATHMANDU: The World Bank (WB) has stated that the impact of COVID-19 will remain on Nepal’s economy in the current fiscal year 2020/21 as well.

In its Global Economic Prospects report released on Wednesday, World Bank said that Nepal’s economic growth that has been affected by the COVID-19 will be limited to 0.6 percent this year.

The World Bank report states that the overall economy will be affected, especially when the tourism business collapses.

“Economic growth in countries with tourism-based economies is expected to decline. Among them are Nepal, the Maldives and Sri Lanka in South Asia,” the report said.

The World Bank has said that Nepal’s tourism and travel business has been affected due to the international ban on travelling due to the pandemic.

Therefore, it is said that the impact will continue in the coming fiscal year.

However, the bank has projected that Nepal’s economic growth rate will improve to 2.5 percent in the coming fiscal year.

In the last fiscal year 2019/20, Nepal’s economic growth had shrunk to 0.2 percent.