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Kathmandu, Nepal, September 1, 2022: The World Bank (WB) has projected that Nepal’s economic growth rate would reach to 5.8 percent in 2022 though the government has already set a target to achieve 8 percent of economic growth rate in the ongoing fiscal year 2022/23.
Unveiling a report ‘Nepal’s Development Update, October 2022’ on Monday, the WB has stated that Nepal’s Gross Domestic Product (GDP) would increase by 5.8 percent. Likewise, the WB has also projected Nepal’s GDP would increase by 5.1 percent in 2023 and by 4.1 percent in 2024.
Earlier, International Monetary Fund (IMF) had estimated that Nepal’s economic growth rate would increase by 4.1 percent in 2022.
Similarly, the WB has estimated that the inflation rate of Nepal would remain 6.3 percent in 2022, 5.5 percent in 2023 and 5.3 percent in 2024. The government has set a target to limit price hike within seven percent.
Likewise, the WB has stated that growth rate of industrial sector in Nepal would be 10.2 percent, growth rate of service sector would be 5.9 percent and growth rate of agricultural sector would be by 2.3 percent. The export of goods and services is projected to increase by 35 percent and import will increase by 15 percent.
In a different note, the WB has also revealed that Nepal has the lowest rate of nonperforming loans (NPLs) in its banking system among the South Asian countries. Nepal is in 15th position among the countries with the lowest NPLs.
According to the report, the ratio of NPLs to total loans of the country’s banks and financial institutions (BFIs) was only 1.16 percent as of mid-July 2022.
Bangladesh has the highest NPLs of 7.97 percent in its banking system among the South Asian countries. Pakistan’s NPLs is 7.89 percent while the index for the Maldives and India are 6.69 percent and 6.54 percent, respectively.
