Nepal’s economic growth rate would remain 5.1 percent in the fiscal year 2022/23 and 4.9 percent in 2023/24, a report reveals.
The ‘Global Economic Prospect Report’ released by the World Bank (WB) on Tuesday has come up with the forecast.
The WB also estimated that Nepal’s economic growth rate would estimably be 5.8 percent in the fiscal 2021/22.
As per the WB’s estimation, economic growth rate would be slashed not only in Nepal but also across the globe.
According to the report, global economic growth rate would be squeezed to 1.7 percent in the year 2023 which is 1.3 percent lower than the earlier estimate.
Six months before or in the month of June this year, the WB had made public an estimation of global economic growth rate of 3.0 percent. In the year 2024, the global economic growth rate would remain 2.7 percent.
The ongoing war between Russia and Ukraine and COVID pandemic has been considered the main causes behind the lower economic growth rate, the economic prospect report noted.
High price hike, high interest rate and disruption in the supply chain have been identified as other causes behind the fall in the economic growth rate.
The WB report further stated that, “The estimation of economic growth rate for the year 2023 is the third big recession in the last three decades”.
According to the report, India would see the economic growth rate of 6.6 percent in the fiscal 2023 and 6.1 in the fiscal 2024.
Likewise, Pakistan would witness the economic growth rate of 2.0 percent in the fiscal year 2023 and 3.2 in 2024. Bangladesh would have the economic growth rate of 5.2 percent in the fiscal 2023 and 6.2 percent in 2024, the WB report reveals.