The Asian Development Bank (ADB) has come up with another new announcement on Nepal’s economic growth.
In its latest Nepal Macroeconomic Update introduced on April 03, 2019, ADB projected Nepal’s economic growth rate at 6.2 percent for FY 2018-19 and 6.3 percent for 2020.
Although there is certainly only a slight rise in projection from 2019 to 2020, ADB claims the Himalayan nation can achieve more, and in a sustained manner.
But, the nation really needs to address some challenges for smooth implementation of fiscal federalism and maintain fiscal discipline to achieve the anticipated growth.
ADB projects a positive outlook for the agriculture industry, that is likely to grow up to 4.5 percent from 2.8 percent of the previous year, favored by monsoons.
This monsoon season is anticipated to boost Nepal’s paddy production to 5.5 million tons, giving an 8.4 percent year-on-year rise.
Industry sector is another area poised for a growth rate, at around 7.1 percent supported by increased power supply and then favored investment climate.
Services sector is also expected to grow by 6.4 percent in FY 2019 as a result of positive trend in wholesale & retail trade and hotel industry, among other related areas, the report added.