World Bank Projects 4.1 Percent Economic Growth Rate in 2023
The World Bank has released the 'Nepal Development Update'. Finance Secretary Toyam Raya and World Bank Country Director Farid Haddad Zarvos jointly released the report here Wednesday.
The report named, 'Nepal Development Update (April 2023): Fine-tuning Policy in a Turbulent Environment' has projected Nepal's economic growth rate to remain at 4.1 percent in 2023. The projection is less than the one made by World Bank last October.
Similarly, showing the reason for better tourism in 2024, the economic growth rate has been projected to be 4.9 percent. The report has stated that the restoration of the tourism sector, increase in remittance, and easing of monetary policy will contribute to economic growth in 2024.
The report further stated that inflation will be recorded up to 8.9 percent in South Asia in 2023, which, however, will be reduced to 7 percent in 2024.
Releasing the report, Finance Secretary Raya informed that revenue collection which was dropping has now come on the positive side. "We hope revenue collection will be increased gradually. Tourism, agriculture, remittance, and hydropower sectors will be contributing to the national economy this year," he said, adding that the country is still under economic pressure. "I believe the country will be able to face this challenge," Raya underscored.
On the occasion, World Bank Country Director Zarvos said all countries in South Asia had witnessed a slump in industrial production including Nepal for 18 months. Sri Lanka, Bangladesh, and Pakistan had taken assistance from IMF and a discussion was underway on whether Nepal also thinks of it.
Chief of the Department of Economics at Tribhuvan University, Prof Dr. Shivaraj Adhikari, said policy departure is essential to tackle present problems of price hikes, low capital spending, and other governance irregularities.
The business Head at ICRA Nepal, Barsha Shrestha, said radical changes in present policy are imperative for long-term economic interests.
