WB estimates 5.8 per cent growth rate in 2022

Kathmandu / Oct 31: The World Bank (WB) has projected that Nepal’s economic growth rate will reach to 5.8 per cent in 2022.

Unveiling a report ‘Nepal’s Development Update, October 2022’ on Monday, the WB estimated that Nepal’s Gross Domestic Product (GDP) would increase by 5.8 per cent.

The WB projected that Nepal’s GDP would increase by 5.1 per cent in 2023 and by 4.1 per cent in 2024.

Earlier, unveiling the report ‘Countering the Cast of Living Crisis’, International Monetary Fund had estimated that Nepal’s economic growth rate would increase by 4.1 per cent in 2022.

However, the government has set a target to achieve an 8 per cent of economic growth rate in the fiscal year 2022/23.

Similarly, the WB estimated that the inflation rate would remain at 6.3 per cent in 2022 as well as a 5.5 per cent price hike in 2023 and 5.3 per cent in 2024.

The government, however, through a budget of the fiscal year 2022/23 has set a target to limit price hikes to seven per cent.

The World Bank has projected that the industrial growth of Nepal is expected to be strong in the agriculture, industry and service sectors.

According to the WB, the growth rate of the industrial sector will be 10.2 percentage points while the growth of the service sector will be 5.9 percentage points and 2.3 percentage points of the agricultural sector in the year 2022.

In 2022, the WB has projected that the export of goods and services will increase by 35 per cent and imports will increase by 15 per cent. (RSS)