KATHMANDU: The World Bank (WB) has projected that Nepal’s economic growth rate will reach to 5.8 percent in 2022.

Unveiling a report ‘Nepal’s Development Update, October 2022’ on Monday, the WB estimated that Nepal’s Gross Domestic Product (GDP) would increase by 5.8 percent. The WB projected that Nepal’s GDP would increase by 5.1 percent in 2023 and by 4.1 percent in 2024.

Earlier, unveiling the report ‘Countering the Cost of Living Crisis’, International Monetary Fund had estimated that Nepal’s economic growth rate would increase by 4.1 percent in 2022. However, the government has set a target to achieve 8 percent of economic growth rate in the fiscal year 2022/23.

Similarly, the WB estimated that the inflation rate would remain 6.3 percent in 2022 as well as 5.5 percent price hike in 2023 and 5.3 percent in 2024. The government, however, through a budget of fiscal year 2022/23 has set a target to limit price hike within seven percent.

The World Bank has projected that industrial growth of Nepal is expected to be strong among from the agriculture, industry and service sectors.

According to the WB, growth rate of industrial sector will be 10.2 percentage points while the growth of service sector will be 5.9 percentage points and 2.3 percentage points of agricultural sector in the year 2022.

In 2022, the WB has projected that export of goods and services will increase 35 percent and import will increase by 15 percent.