KATHMANDU: The International Monetary Fund (IMF) has projected that Nepal’s economy (Gross Domestic Product) will grow by 4.2 percent in the current financial year.

Making the projection public on World Economic Outlook, the IMF predicted that Nepal’s economy will grow by 5 percent in 2023 and only 5.3 percent by 2027.

Similarly, according to the IMF, the price increase in Nepal in the current fiscal year will be 8.1 percent and this rate will decrease to 7.1 percent in 2023.

According to the report, based on the size of the economy, the current account deficit will be of 12.1 percent. In the last fiscal year, Nepal’s current account was down by 623 billion. The current account shows the amount of money coming in and going out from the country based on the country’s import and export, income from remittances, etc.

The IMF has predicted that the growth of the world economy will also be limited to 3.2 percent. In 2021, there was an increase of 6 percent and the inflation in the world will increase from 4.7 percent to 8.8 percent in 2022.

The IMF has noted that the global economy has seen a larger and more severe than expected recession and the inflation is at its highest level in decades.