NRB Projects 4.5% Growth in Service Sector for Current Fiscal Year

The Nepal Rastra Bank (NRB) has projected a robust growth of 4.5 percent in the service sector for the current fiscal year, according to the review of its third monetary policy. This promising outlook is driven by notable improvements across several sub-sectors including transportation, storage, wholesale, and retail trade.

A significant factor contributing to this growth is the resurgence in tourist arrivals, which have now exceeded pre-pandemic levels. The NRB’s review highlights that within the first four months of 2024, Nepal welcomed approximately 100,000 more tourists compared to the same period before the COVID-19 pandemic.

“The influx of tourists is expected to invigorate the economy by creating employment and income opportunities,” the NRB review stated. This surge in tourism is seen as a critical driver for economic revitalization, underpinning the overall optimistic growth forecast for the service sector.