Nepal’s economic growth rate second highest in the South Asian region: World Bank’s latest report, ‘Making Decentralization Work’

The World Bank has predicted the economic growth of Nepal to be at 7.10% for the year 2019. The bank published a special report on the South Asian economic condition titled “Making Decentralization Work”, in which it suggested that the growth of tourists flow and improved public expenditure has helped the economy to grow positively.

The growth rate of Nepal is only behind that of Bangladesh in the South Asian region. The bank has estimated the economic growth rate of Bangladesh to be at 8.10%. The growth of manufacturing and service sector in the current year has supported the economic growth of Nepal as per the report.

Similarly, the bank has estimated growth rate of India at 6%, Maldives at 5.20%, Bhutan at 5%, Pakistan at 3.30%, Sri Lanka at 2.70% and finally Afghanistan at 2.50%.

The report also suggested that the economic growth rate of Nepal is likely to fall in the coming years. It has been estimated that in the year 2020, the growth rate will fall to 6.40% and in 2021, it will stand at 6.50%. However, the growth rate will average at 6.50% in the next two years as suggested by the report.