Kathmandu, September 17 : Nepal’s economy growth is projected to decline to a mere 1.5 percent in the current fiscal year thanks to the protracted COVID-19 pandemic.
Such a projection was made by the Asian Development Outlook 2020 Update released recently by the Asian Development Bank (ADB). The ADB lowered the anticipated growth rate for the FY 2020/21 by 1.6 percent from its earlier estimate of 3.1 percent.
“ Nepal’s economy will see a sharp slump as a result of decline in exports, remittances, and tourist income, and the stringent measures to contain the effects of the pandemic,” said ADB Country Director for Nepal Mukhtor Khamudkhanov. “Expected sharp economic downturn in neighboring India, Nepal’s predominant trade partner, will also dent Nepal’s growth prospects.”
Compared to other South Asian countries, Nepal and Afghanistan might well see the lowest economic growth at 1.5 percent, according to the ADB. It also projects that Maldives will record the highest growth at 10.5 percent among such countries, according to the ADO.
