KATHMANDU, March 25: Asian Development Bank on Tuesday said Nepal’s economy will grow by 4.6 percent in the current fiscal year, down from last fiscal year’s 5.2 percent growth.
The Manila-based multilateral donor has blamed unfavorable monsoon and political uncertainty for slow growth despite improving investors confidence, growing foreign direct investment commitments and reform-oriented budget.
Making public its Asia Development Outlook 2015, ADB said government’s capital expenditure will be important for economic growth.
ADB, however, has projected economic growth at 5.1 percent in 2016/17.
ADB supports Nepal’s digital transformation toward high‑impact...
The government in its mid-term review has claimed the growth will hover above 5 percent.
ADB has said that inflation will be lower than Nepal Rastra Bank’s target of 7.7 percent owing to sharp drop in international oil prices, multiple downward revisions to domestic fuel prices and lower inflation in India.
Meanwhile, ADB also has projected growth for the next two years for Asian countries. ADB has seen strong growth for developing Asia in the next two years supported by soft commodity prices and recovery in major industrial economies. ADB’s flagship annual publication Asian Development Outlook forecasts Developing Asia will achieve gross domestic products growth of 6.3 percent in both 2015 and 2016.
In a press statement, ADB’s Chief Economist Shang-Ji Wei said, “Developing Asia is making a strong contribution to global growth.”
-1200x560-1774525080.webp)
-1200x560-1774341373.webp)
