The Asian Development Bank (ADB) forecasts Nepal’s economic growth (gross domestic product growth) rate for fiscal year 2022/23 to be 4.7 percent.
In its most recent update, released on Wednesday, the bank anticipated a rate substantially lower than the government’s 8% target.
“Downside risks to growth may stem from additional rigorous actions by the authorities that may be required to curb imports, which will decrease domestic output and consumption, negatively hurting growth,” said Arnaud Cauchois, ADB Country Director on Nepal. “A rebound of COVID-19 infections resulting in lockdown measures, an escalation of dengue fever stressing the weak health system, natural calamities, and geopolitical uncertainty may further impact growth prospects.”
Meanwhile, the bank makes remarks on the government’s fiscal year budget and monetary policies.
“According to the budget speech for 2023, the government’s fiscal strategy is moderately expansionary, with an emphasis on boosting agriculture, industry, infrastructure, and social protection. Monetary policy is contractionary, with the goal of controlling domestic demand, rising prices, and rising imports.”