World Bank projects Nepal’s economy to grow by 3.9 percent

NL Today

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Kathmandu: Nepal’s economic growth rate in the current fiscal 2021-22 is projected to limit at 3.9 percent, according to the World Bank’s Global Economic Prospects report launched on Wednesday.

The projection is based on the Covid-19 vaccine coverage, growth in agricultural productivity and improvements in the service sector. The government has projected a 7 percent growth rate.

The report points out the possibility that fresh threats from Covid-19 variants and a rise in inflation, debt, and income inequality could endanger the recovery in emerging and developing economies. Likewise, some South Asian nations in course of an economic rebound face the risk of another wave of Covid-19.

The report projects that global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.