WB projects Nepal’s economic growth at 3.9 percent, estimates it to improve next year

KATHMANDU: The multilateral development partner World Bank has estimated Nepal’s economic growth rate to be 3.9% in the current fiscal year.

Releasing the Global Economic Prospects report on Tuesday, the Bank forecasted an acceleration in Nepal’s economic growth rate for the upcoming year. The projection suggests Nepal’s economic growth rate will reach 5% in the fiscal year 2081/82.

The Bank attributes the projected rise in economic growth to relaxed monetary policies and the removal of import controls. Despite indicating a subdued global economic outlook, the Bank has also hinted at some optimism.

The Bank’s outlook for the global economy in 2024 is also moderate. The global economy is estimated to grow by only 2.4% in 2024, compared to the 2.6% growth predicted for 2023.

Additionally, the Bank has indicated a growth of 5.7% for South Asia’s economy in 2023, and a projected increase to 5.6% in 2024. The positive growth rate in India has significantly contributed to the relatively favorable figures for South Asia’s economic performance.

India, which experienced a growth rate of 6.3% in 2023/24, is expected to witness an even higher growth rate of 6.4% in the coming fiscal year.