KATHMANDU Jan 11: The World Bank Group has revised down the growth forecast for Nepal by nearly one percentage point to 4.6 percent for the current fiscal year 2017/18. Launching the global economic prospects on Wednesday, the Washington-based organization revised down its own economic growth forecast in June last year by 0.9 percentage point.
However, the World Bank had already said in its Nepal Development Update -- a half-yearly publication to report on key economic developments of Nepal--in September last year that the growth is expected to moderate to an average of 4.6 percent in the current fiscal year partly due to severe floods in the southern plains of the country in mid-August last year.
The new report released on Wednesday also reiterates that the growth after a strong rebound in the last fiscal year is going to moderate to the decade-long average level.
“In Nepal, following the strong recovery in 2017, growth is expected to moderate owing to infrastructure bottlenecks, regulatory challenges, and lower agricultural output,” states the flagship report of the World Bank Group entitled 'Global Economic Prospects: Broad-Based Upturn, but for How Long?'