Nepal | June 03, 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:

Tropical storm kills 17 in El Salvador and Guatemala

SAN SALVADOR: Rains from Tropical Storm Amanda left at least 17 dead and seven missing while causing extensive damage across El Salvador and Guatemala that pushed thousands of people into shelters amid the coronavirus pandemic. EL Salvador Interior Minister Mario Durán said Monday some 7,000 peo Read More...

Is pedestrian and cycle-friendly mobility possible post-lockdown? 

Kathmandu   Cycling to his place of work, Dr Paban Sharma, Professor at Patan Academy of Health Sciences, has had to face the brunt of the police officials on more than one occasion. Ever since the nationwide lockdown was imposed on March 24, Sharma’s preferred means of commute has been h Read More...

Nepal Airlines Corporation, Airbus, aircraft, Tribhuvan International Airport, Kathmandu, Toulouse, France

Nepal Airlines operated 22 chartered flights during lockdown

Kathmandu, June 2 Although the government had restricted operations of domestic and international flights in the wake of nationwide lockdown, the national flag carrier, Nepal Airlines Corporation (NAC), has been conducting chartered flights under special conditions. According to the Corporation, a Read More...

Preparing schools for a changing digital landscape

In the last two decades, the world has witnessed a dramatic shift in both its educational and technical landscapes. Nepal has attempted to follow suit. I grew up in a middle class family in south eastern Nepal. We did not have a computer at home, let alone a cell phone. My family used a dial up p Read More...

Coronavirus cases in Karnali Province jump to 252 with 54 new infections

KATHMANDU: Fifty-four additional people have tested positive for the coronavirus infection in Karnali Province, on Tuesday. As of today, five districts of the province have witnessed cases of COVID-19. With the newly confirmed infections, number of cases has reached 252 in the province. Until Read More...

In Pictures: Masks On, Game On

Local youths playing cricket to spend time during lockdown with their mask on for safety in Kshetrapati, Kathmandu, on Tuesday, June 2, 2020. Photo: Balkrishna Thapa Chhetri/ THT Read More...

Worldwide coronavirus cases cross 6.29 million, death toll nears 375,000

At least 6,290,684 people have been reported infected with the novel coronavirus globally and 374,933 have died, a Reuters tally shows. Infections have been reported in more than 210 countries and territories since the first cases were identified in China in December 2019. Meanwhile, US he Read More...

FIFA asks leagues to use "common sense" over Floyd protests

BERN: World soccer's governing body FIFA has asked competition organisers to use "common sense" with players who display messages of protest over the death of George Floyd, an unarmed black man killed in police custody in the United States. FIFA regulations bar players from displaying any "po Read More...