Nepal's economic growth to increase by 4.1 percent by ADB

Sep Wed 2021 01:30:51

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Nepal's economic growth to increase by 4.1 percent by ADB

Kathmandu. The Asian Development Bank (ADB) has projected Nepal's economy (at market prices) to grow by 4.1 percent in 2022. Updating the bank's flagship publication 'Asian Development Scenario' today, it has projected modest growth in Nepal's economy. The bank had projected that Nepal's economic growth would be limited to 2.3 percent in 2021.

Due to sufficient rainfall, paddy production is expected to increase next year and industrial production is also expected to increase, while the contracted economy is expected to improve based on the improvement in exports and reduction of infection by the national vaccination campaign.

Inflation is projected at 5.2 percent due to higher prices of petroleum products. Earlier, it was estimated to be limited to 3.6 percent. With the increase in hydropower generation, the supply of petroleum products will also gradually decrease and that will put less pressure on the balance of payments. Despite the increase in remittance income and exports, the current account deficit will remain high, the report said.