World Bank Predicts Nepal’s Economic Growth to Reach 4.5%

On April 3rd, Nepal received news from the World Bank (WB), which forecasts the country’s economic growth rate to rise to 4.5% for the fiscal year 2024/25, an increase from the prior year's 3.9%.

The document states that growth will primarily stem from domestic commerce, hydroelectric power, and paddy cultivation, projecting an anticipated average rate of 5.4 percent for both fiscal years 2025/26 and 2026/27.

David Sislen, who serves as the World Bank’s Country Director for Maldives, Nepal, and Sri Lanka, stressed the importance of fostering economic expansion driven by the private sector to generate employment opportunities.

The report further underscores possible threats to Nepal’s economic forecast, such as geopolitical tensions and trade-related instabilities, decreasing investment yields, worsening loan performance, policy inconsistencies from recurrent personnel changes, and hold-ups in executing the capital budget.

Published by HT Digital Content Services with authorization from Republica.

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