KATHMANDU: The Covid effect has made it difficult to achieve 4 percent economic growth. Although the economy appears to be improving for the first nine months of the fiscal year 2077/78, the Nepal Rastra Bank estimates that it will be challenging to achieve the estimated 4 percent economic growth due to the ban on cod infection.
The government had set a target of 7 percent economic growth in the budget of the Fiscal Year 2077/78. However, the Central Statistics Office had recently released an estimate of 3.98 percent of the country’s economic growth in the current fiscal year 2077/78.
The NRB has indicated that 4 percent economic growth will be difficult through monetary policy quarterly review after the continuous ban was imposed.
This is far below the average of the world economy. Many countries, including developed ones, have started vaccinating against covid and have adopted loose finance and monetary policy for economic recovery. That is why the world economy is moving towards recovery, according to the National Bank.
The International Monetary Fund (IMF) has projected that the global economy, which contracted by 3.3 percent in 2020, will expand to 6 percent by 2021. The IMF and other development partners have projected that Nepal’s economic recovery will be at least a year slower than the rest of the world.
The World Bank has projected that Nepal’s economic growth will be only 2.7 percent this year. He made the assessment while releasing the latest version of the Nepal Development Update Report.
The report had pointed out that Nepal’s economy would expand by 2.7 percent in the fiscal year 2078/79, with loose and favorable monsoon expectations. Economic growth was 7 percent in FY 2075/76 but limited to 2.28 percent in FY 2076/77.