IMF projects Nepal’s economic growth rate at 4.1 percent in 2022

NL Today

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Kathmandu: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.

In a report ‘World Economic Outlook’, the IMF stated Nepal achieved a growth rate of 2.1 percent in 2021. The economy is projected to grow by 6.1 percent in 2023.

Earlier, the World Bank had projected Nepal’s economy to grow by 3.7 percent in the current fiscal year and 4.1 percent in the Fiscal Year 2022/23.

Economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the war in Ukraine, a resurgent pandemic, and tightening global financial conditions, according to IMF.

Regional gross domestic product will expand by 4.9 percent, 0.5 percentage points less than we forecast in January and slower than last year’s 6.5 percent growth rate, according to the latest projections. IMF also estimates that inflation will rise faster in many countries, though from relatively low levels.

Slower growth and rising prices, coupled with the challenges of war, infection and tightening financial conditions, will exacerbate the difficult policy trade-off between supporting recovery and containing inflation and debt, reads the report.