June 10: The World Bank has said Nepal’s economic growth will be limited to 2.7 percent in the current fiscal year due to the impact of Covid-19 pandemic.
Releasing the Global Economic Prospect on Tuesday (June 8), the World Bank projected Nepal’s growth to be 3.9 percent in the upcoming fiscal year (FY 2021/22). Similarly, the reports projects Nepal’s economy to rebound and grow to 5.1 percent in FY 2022/23.
According to the report, the economy of South Asian region is expected to grow by 6.8 percent in 2021. This estimate is 3.6 percent higher than what was previously projected.
Similarly, the global economy is set to expand 5.6 percent in 2021—its strongest post-recession pace in 80 years. This recovery is uneven and largely reflects sharp rebounds in some major economies, the World Bank said.
In many emerging market and developing economies (EMDEs), obstacles to vaccination continue to weigh on activity.
“By 2022, last year’s per capita income losses will not be fully unwound in about two-thirds of EMDEs,” the report further stated.
According to the World Bank, the global outlook remains subject to significant downside risks, including the possibility of additional COVID-19 waves and financial stress amid high EMDE debt levels.
The report suggests policy makers to balance the need to support the recovery while safeguarding price stability and fiscal sustainability and to continue efforts toward promoting growth-enhancing reforms.