Good Growth Forecast

Nepal's economy will grow by 5.1 per cent in the Fiscal Year (FY) 2024/25 from 3.9 per cent in the last FY, the World Bank (WB) has projected. The growth will be driven by anticipated high tourist arrivals, along with increased hydropower and paddy production. And the private sector is expected to contribute to much of this growth. The economy is also expected to benefit from the central bank's relaxing of monetary policy and easing of regulatory requirements. Earlier, the Asian Development Bank (ADB) set the growth rate at 4.9 per cent for the current fiscal. Both the estimates are below the projections of six per cent made by the government through the budget for this year.