Monday 19th February 2024

Nepal’s economic growth to reach 4.1% this fiscal year: ADB

Published on : 25 September, 2021 12:06 pm

The Asian Development Bank has projected Nepal economic growth (gross domestic product growth) rate to be 4.1 per cent for the fiscal year 2021/22.

In its latest update made public on Tuesday, the bank projected the rate much lower than the government’s 7 per cent target.

“Growth will largely be supported by the ongoing vaccination campaign against Covid-19 as the national immunisation plan remains key to Nepal’s economic recovery,” ADB Nepal Country Director Arnaud Cauchois says, “Downside risks include the uncertain trajectory of Covid-19, a possible surge in Covid-19 cases, and subsequent strict containment measures, which could reverse the gradual economic recovery in FY2021.”

According to the report, the growth in Nepal’s agriculture will likely be boosted by increased paddy plantation amid abundant rainfall this monsoon season. Industry output is expected to grow, thanks to a large increase in export volume and stronger domestic demand, as the rollout of the national vaccination plan will reduce infection rates over time, the bank says in its statement.

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