Tuesday, January 8, 2019

World Bank forecasts 5.9 per cent economic growth

The World Bank has made an upward revision of Nepal’s economic growth projection to 5.9 per cent in the current fiscal year 2018-19, from its earlier forecast of 4.5 per cent in June 2018.
The World Bank projection of 5.9 per cent growth for the current fiscal year is however lower than the recent projection of the International Monetary Fund (IMF), which had made a growth forecast of 6.5 per cent – in December – for Nepal.
Likewise, Asian Development Bank (ADB), in its macroeconomic update in September, had made economic growth forcast for the current fiscal year at 5.5 percent. But the government has targeted to achieve 8 per cent economic growth for the current fiscal year.
In its flagship report ‘Global Economic Prospects’ released today, the World Bank said that the growth is forecast to decelerate to 5.9 per cent in the current fiscal year as Nepal’s strong post-earthquake momentum is expected to moderate.
According to the report, activity will be underpinned by strong infrastructure investment and consumption. The report also projects continuous economic growth of 6 per cent for the next three fiscal years. "In the last fiscal year, Nepal achieved an estimated economic growth of 6.3 per cent," the report reads.
Last fiscal year less favorable monsoons led to weakness in agricultural activity, but this was offset by a recovery in remittances and robust industrial sector growth, particularly for manufacturing activities to push the economic growth at 6.3 per cent, the report further reads.

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