One of the poorest and foreign aid-based economies in the world, Nepal is showing economic progress toward positive results after being hard hit by the coronavirus pandemic for the past 3 years.
The World Bank (WB) has estimated Nepal’s economic growth rate to reach 5.1 percent in the fiscal year 2022/23, which is way higher than the projection of 4.7 percent made by the Asian Development Bank.
Unveiling the report entitled ‘Latest Macroeconomic Update,’ the WB has estimated the higher economic growth rate at the back of a rebound in the tourism business to support Nepal’s service sector and strong industrial growth triggered by increased hydroelectricity production.
The multidimensional lending organization, however, has revised the economic growth rate to 4.9 percent for the fiscal year 2023/24.
While public debt levels are expected to steady and pressure on foreign exchange reserves is expected to ease, Nepal continues to face organizational challenges relating to a modernization of the tax system, the attraction of new sources of foreign exchange (especially FDI), and full implementation of fiscal federalism that need to be addressed to ensure sustainable and inclusive growth, stated the World Bank report.
Many analysts suggested inputting financial aid to its long traditioned sustainable agriculture to sustain its economy and create jobs inside the country rather than sending its youths to foreign employment but due to political and financial instability, youths are in the caravan of seeking foreign jobs across the world.
Do you think Nepal would get such financial progress as assumed by the world bank? Have your say.