World Bank Forecasts Nepal’s Economic Growth to Reach 5% in FY 2081/82

In a recent development, the World Bank, a prominent multilateral development partner, has projected Nepal’s economic growth rate to be 3.9% in the current fiscal year. The announcement came as part of the Global Economic Prospects report released on Tuesday.

The report indicates an optimistic outlook for Nepal’s economic future, forecasting an acceleration in growth for the upcoming fiscal year. The World Bank predicts that Nepal’s economic growth rate will reach 5% in the fiscal year 2081/82. This anticipated surge in growth is attributed to relaxed monetary policies and the removal of import controls.

Despite a generally subdued global economic outlook, the World Bank’s report hints at some optimism. The global economy is estimated to grow by 2.4% in 2024, a slight decrease from the 2.6% growth predicted for 2023.

Moreover, the World Bank projects a robust growth of 5.7% for South Asia’s economy in 2023, with a further increase to 5.6% in 2024. This positive trajectory is largely influenced by India’s impressive economic performance, which experienced a growth rate of 6.3% in 2023/24. The projections for the coming fiscal year suggest an even higher growth rate of 6.4% for India.

The Bank’s assessment indicates that the relaxation of monetary policies and the removal of import controls have played a pivotal role in propelling economic growth in Nepal. As the country gears up for the fiscal year 2081/82, these positive indicators offer hope for sustained economic development in the region.