Nepal | August 05, 2020

GDP growth in this fiscal projected at 6.02pc

Himalayan News Service
Share Now:

Kathmandu, July 26

The country’s economy is projected to grow at 6.02 per cent in the current fiscal year and 5.77 per cent in the next fiscal based on the current macroeconomic scenario, as per the Institute for Integrated Development Studies (IIDS), a research wing of Kathmandu University.

Releasing the Nepal Economic Outlook 2018-19 today, IIDS stated that the growth rate will moderate in the current fiscal while it is expected to decline in fiscal 2020-21.

The economic growth forecast of IIDS for this fiscal is lower than those made by World Bank (WB), Asian Development Bank (ADB) and International Monetary Fund (IMF).

The WB has projected Nepal’s economy to grow at 6.4 per cent in fiscal 2018-19 while ADB and IMF have both forecast a 6.3 per cent growth. For fiscal 2020-21 too, the GDP growth forecast of IIDS is lower compared to WB’s which has projected Nepal’s economy to grow at 6.5 per cent during the year. However, IMF has projected Nepal’s economy will grow at 4.5 per cent in fiscal 2020-21.

Meanwhile, the IIDS has projected inflation in the country to remain at 4.76 per cent in the ongoing fiscal year and 4.7 per cent in the next fiscal year. On the other hand, WB, ADB and IMF have projected inflation to stand at 4.7 per cent, 5.1 per cent and 6.5 per cent, respectively,  in the ongoing fiscal year. In fiscal 2020-21, IMF and WB have projected inflation to stand at 6.2 per cent and five per cent, respectively.

Speaking at a panel discussion at the Nepal Economic Outlook 2018-19 event, former finance ministers emphasised on the need to focus on policy implementation, project execution, controlling corruption, effective governance and enhancing bureaucratic capacity to foster desirable economic and development growth.

“Rather than being populist, the government should focus on implementing policies, generating employment opportunities, establishing a culture of respect for labour, developing infrastructure and enhancing the capacity of the three tiers of the government so that the country can achieve competitive development and economic growth,” said former finance minister Ram Sharan Mahat.

Similarly, former finance minister Prakash Chandra Lohani, said that the government should primarily address the issue of corruption and maintain transparency in every government activity in a bid to develop the economy and the country. “For this, the government should immediately endorse the Transparency Law, which was drafted many years ago,” he said.

Likewise, former finance minister Surendra Pandey, said that efforts should be made to bring informal businesses and activities into the formal economy.


A version of this article appears in print on July 27, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

MoHP lists swab collection centres in Kathmandu; urges public to follow safety guidelines

KATHMANDU: The Ministry of Health and Population on Tuesday announced 14 swab collection centres to facilitate extensive testing of coronavirus infection in Kathmandu valley at a time when new cases have been on the rise. MoHP has urged the public to visit the swab collection centres from 9:00 am Read More...

Gai Jatra: Festival that honours the memory of those departed

KATHMANDU: Gai Jatra, literally translated to the festival of cows, is observed by bereaved families by taking out procession in memory of the ones they have lost. People, especially children, walk in different costumes, and the processions are also accompanied by traditional bands. Gai Jatra is Read More...

Nepal’s COVID-19 count crosses the 21k mark, 259 new cases detected on Tuesday

KATHMANDU: The Ministry of Health and Population has recorded 259 new cases of the coronavirus infection on Tuesday, taking the nationwide count to 21,009. The new infections were confirmed after testing 7,687 specimens through PCR method across the nation in the last 24 hours. Among the new c Read More...

Nepal COVID-19 Update: 259 new cases, 65 recoveries, one fatality recorded today

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 406,494 tests through Polymerase Chain Reaction (PCR) method have been carried out, w Read More...

Nepal logs one more COVID-19 fatality; death toll reaches 58

KATHMANDU: One more person has succumbed to the coronavirus infection, confirmed the Ministry of Health and Population (MoHP) at its regular media briefing, on Tuesday. A 77-year-old male from Biratnagar Metropolitan City-5, Morang, has died from the highly contagious disease on Monday. The pa Read More...

Reimpose lockdown, issue curfew order if necessary; strictly implement security protocol: Experts to PM Oli

KATHMANDU: At a meeting called to discuss government's further steps to contain the spread of Covid-19, experts suggested that the government should reimpose lockdown to ensure that the pandemic is checked. Some health experts even suggested Prime Minister KP Sharma Oli, who had convened the meeting Read More...

Bangladesh board denies not paying players ICC prize money

DHAKA: The Bangladesh Cricket Board (BCB) on Tuesday dismissed allegations from a players' body that its international cricketers have not been paid all their prize money. The Federation of International Cricketers' Associations (FICA) said in a report that the Bangladesh players have not bee Read More...

Prominent Muslims to grace Hindu temple ceremony on contested India site

LUCKNOW: In a gesture of reconciliation, two prominent Muslims who lived through deadly riots following the razing of a mosque in northern India in 1992 plan to attend the foundation-laying ceremony for a Hindu temple on Wednesday on the same site, they said. Prime Minister Narendra Modi, who Read More...