KATHMANDU- The Asian Development Bank (ADB) has projected Nepal’s economic growth (gross domestic product growth) rate to be 4.1 per cent for the fiscal year 2022/23.
In its latest update made public on Tuesday, the bank projected the rate much lower than the government’s 8 per cent target. Nonetheless, the government has also already accepted that the target is impossible to achieve.
“Nepal’s gross domestic product (GDP) growth is projected to slow largely due to tight monetary policy, slackened domestic demand, the unwinding of Covid stimulus, and persistent global headwinds,” the bank says.
“There are downside risks to the outlook such as a global downturn hitting Nepal’s tourism and remittance receipts,” said ADB Country Director for Nepal Arnaud Cauchois. “Accelerating capital budget spending through focused investment planning, financial management, and project readiness will help spur Nepal’s economic growth over the years.”