Kathmandu, April 5 : The Asian Development Bank (ADB) has made a downward revision of the projected economy growth of Nepal in the current fiscal year 2019/20 to 5.3 percent from its earlier forecast of 6.3 percent.
While unveiling its Nepal Macroeconomic Update recently, the ADB came up with such revision, thanks largely to the novel coronavirus disease (COVID-19).
“The nationwide lockdown has brought major economic activities to a standstill. Manufacturing industries have closed their operations, with only those producing essential items — medical supplies, food and dairy products — remaining open. Apart from those providing essential services, all other offices have been closed,” states the ADB adding,” Domestic and international trade has substantially slowed down. If this situation normalises soon and the lockdown is removed from April 8, the loss to the economy may be restricted to about one per cent of GDP.”
Lower agricultural output particularly of rice, which accounts for nearly 7% of GDP, will also dampen growth prospects, according to the Mani-based bank.
Similarly, a late monsoon, flooding in some areas in early July, and pest infestation are said to be other main factors apart from the coronavirus pandemic that could stifle the country’s economic growth rate.
The government has so far not made any revision to its ambitious growth target of 8.5 percent set for this current fiscal.
