Legal Documents

ADB forecasts modest economic growth

Nepal’s economy is anticipated to grow by 3.9 percent (at market prices) in fiscal year (FY) 2022 from an estimated 2.3 percent growth in FY2021, says the latest Asian Development Outlook (ADO) 2022, the flagship economic publication of the Asian Development Bank (ADB), and its Macroeconomic Update.

Growth is expected to rebound on the back of the ongoing vaccination campaign against the coronavirus disease (COVID-19) pandemic to control infections, fostering a gradual normalization in economic activity and a steady path to higher growth supported by accommodative macroeconomic policies.

“However, slowing growth in advanced economies exacerbated by the Russian invasion of Ukraine, along with disrupted trade flows and higher oil and other commodity prices, is expected to push inflation and may exert further pressure on Nepal’s balance of payments and foreign exchange reserves,” said ADB Country Director for Nepal Arnaud Cauchois.

Agriculture was previously expected to grow favorably as paddy plantation had been promising amid abundant rainfall during the 2021 summer monsoon. However, unexpected rains and floods in mid-October damaged ready-to-harvest crops, which shrank paddy output by about 9 percent this fiscal year. Industry growth is expected to edge up to 4.1 percent in FY2022 on increased consumer and investment demand. Services will likely grow by 5.2 percent as wholesale and retail trade, transport, and financial services have picked up. International tourism remained depressed in 2021 but will likely gradually recover if the COVID-19 situation remains under control.

Inflation in FY2022 is forecast to average 6.5 percent , up from 3.6 percent in FY2021, reflecting the transmission of higher global oil prices and subsequent higher transportation costs. The recent uptick in petroleum and commodity prices, owing to the Russian invasion of Ukraine, has added further inflationary pressure. The current account deficit is expected to further widen to 9.7 percent in FY2022 from 8.0% of gross domestic product (GDP) in FY2021 due to increased import growth, a low export base, and subdued workers’ remittances.

GDP growth at 5 percent is envisaged for FY2023 on the expectation that vaccination against COVID-19 will continue to progress, enabling further revival of economic activities that have gradually picked up since FY2021. Inflation is forecast to marginally decline to 6.2 percent in FY2023, reflecting a better harvest, smoother supply chain distribution, relatively subdued oil prices, and a modest decline in India’s inflation. The current account deficit is expected to moderate to 6.1 percent of GDP in FY2023 as monetary policy is likely to be less expansionary, COVID-19-related imports will have substantially decreased, and increased hydroelectricity generation eases fossil fuel consumption.

Downside risks to the outlook center on exogenous shocks such as emergence of strong, new coronavirus variants, intensification of the current global turmoil, and recurrence of calamities like floods, landslides, and earthquakes, which have devastated lives and livelihoods in the past.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: https://english.karobardaily.com/2022/04/06/adb-forecasts-modest-economic-growth/ 


Most Recent News

Title Category Create Time Eng Nep
Sustainability: Essential to success in the European spice sector News 2024-07-18 00:00:00.0
Corporate Sustainability Due Diligence News 2024-07-18 00:00:00.0
Germany - Largest apparel market in the European Union News 2024-07-14 00:00:00.0
How the war in Ukraine is affecting international trade and emerging economies News 2024-07-14 00:00:00.0
How digitalisation is shaping the apparel industry News 2024-07-14 00:00:00.0

Search All News

Title Category Eng Nep
Cargo tracking system will be implemented soon : Ministry of Industry, Commerce, and Supplies News
Foreign Trade Statistics of Nepal [First two months (Shrawan-Bhadra) of Fiscal Year 2074-75] News
Corporate Sustainability Due Diligence News
Nepal's trade is now surplus in US market News
India to grant Nepal access to two key ports in Gujarat & Odisha under trade, transit treaties News
ITC partners with national private and public stakeholders and the World Bank to establish a Nepali value chain for the Pashmina sector. News
Revolving fund of Rs 10 million set up for agriculture and education News
The problem of trade and transit between Nepal and India will be resolved. News
Nepal to discuss trade barriers at IGC meet News
Sustainability: Essential to success in the European spice sector News
१७ करोड बराबरको नेपाली सिमेन्ट भारतमा निर्यात News
UK's New trading scheme cuts tariffs on hundreds of everyday products News
Training of Trainers (TOT) on Nepali products designs as per Demand in the International Market News
Policymakers voice for enhancing bilateral economic cooperation News
Millions of rupees of tax evasion in carpet industry revenue News
Nepali EPG urges new peace, friendship treaty with India News
MoC launches updated NTIS 2016 News
ऊनी फेल्टका झोला निर्यात News
भन्सार दर तथा अन्तशूल्कको दर हेरफेर News
Export opportunities emerge as Nepal prepares move beyond LDC status News
Kiwi fruit saplings being exported to Bhutan News
Nepal-India ICG meeting will be focused on trade facilitation News
Minister Yadav directed the ministry to make Birjgunj ICP ready for inauguration in 3 days. News
Govt fixes support price for coffee News
सिमेन्ट र क्लिंकरको निर्यात बढ्यो News
वार्षिक निर्यात ५० करोडभन्दा बढी भए थप सुविधा कार्तिक 3, वुधवार News
Root cause analysis addresses non-tariff measures in Central Europe News
कफी खाने बढे, सरकारले ध्यान दिए अर्थतन्त्रको खम्बा बन्नसक्छ News
EU-Nepal Trade and Investment Project News
Production of seven provinces in a single sales center News
Cardamom insurance, compensation if plant dies News
Honorable Minister for Industry, Commerce & Supplies Ramesh Rijal's visited TEPC News
केही वस्तुको आयातमा प्रतिबन्धको निरन्तरता News
राष्ट्रवादी नाराले हुँदैन, उपभोक्ता र व्यापार सन्तुलनका लागि सस्तो वस्तु आयात गरेर महँगो वस्तु निर्यात गर्ने हो : सरद बिक्रम राणा [अन्तर्वार्ता] News
Nepal: Coffee Export Guides, Market Access Map and Quality for Trade Platform launched News
सुनको मूल्य तोलाको एक लाख नजिक News
President Obama Signs Nepal Trade Preferences Bill News
Discussion on Trade facilitation News
From now 'output- based' on grants only News
Registration into GACC for Exporting to China News
Nepal participated in the first International Planning Meeting ahead of Expo 2025 Osaka Kansai. News
President Obama Signs Proclamation to Implement Nepal Preference Program News
Int'l Women's Trade Expo concludes on a high note News
ECTS system in Nepali cargo coming to Kolkata port. News
DoC introduces ExIm code for traders News
Nepal-USA Trade and Investment Framework Agreement (TIFA) Meeting News
Narrowing gap on Trade Deficit due to Import Restriction (in Nepali) News
व्यापार घाटा झन्डै १६ प्रतिशतले घट्यो। News
भन्सार एजेन्टको परिक्षामा उत्तिर्ण भएकाहरुलाई ईजाजतपत्र News
ADB forecasts modest economic growth News
Govt targets 4% GDP contribution from NTIS products News
Commerce and Trade Agreement will be reviewed News
Insurance designed to make cardamom farming commercial News
Deputy Head of Mission, Australian Embassy in Kathmandu visited Trade and Export Promotion Centre News
मुस्ताङबाट ५० करोडको स्याउ निकासी News
जनप्रशासन संघ एवं व्यापार तथा निकासी प्रवर्द्धन केन्द्र बिच अन्तरकृया कार्यक्रम सम्पन्न News
लगानी प्रवद्र्धन केन्द्रित नीति बनाउन सुझाव News
Nepali VP sees huge market in China for Nepali products News
Prime Minister's China Visit: Agreement on three ports News
The process of building dry port in Chobar has started. News
Hong Kong Trade Development Council (HKTDC) visited Trade and Export Promotion Centre News
जर्मनीका व्यापार मेलाहरुबारे छलफल सम्पन्न News
Nepal participated in Biofach Trade Fair 2022 in Nuremberg, Germany. News
वित्तीय क्षेत्र सुदृढीकरण गर्न विश्व बैंकको १८ अर्ब ऋण सहयोग News
Economic growth rate of Province-2 is 3.5 percent News
Railway agreement between Nepal and India News
TIFA meeting after 6 years: US interest to increase export of Nepali products. News
U.S.-Nepal Joint Statement on 3rd Trade and Investment Framework Council Meeting News
UK has come out with The Developing Countries Trading Scheme (DCTS) News
मंसिर २३ देखि हस्तकला व्यापार मेला News
Upto 8% Cash Incentives in some of the Potential Export products News
राष्ट्रिय सम्पत्तिको मूल्यांकनमा जोड News
Cereal crop production up, vegetable production down in Karnali News
Nepali Cargo Rail Access to Calcutta News
'EXIM Code mandatory from Augusut: Deposit amounted reduced to 3 lakhs News
Nepal to have benefit in GSP facilities even after Nepal's LDC graduation News
Nepal's Export Trade via Rasuwa Border Resumes (Nepali Version) News
China announces zero-tariff treatment for 98% of tariff lines for 16 LDCs News
इन्डोनेसियाको निर्यात प्रतिबन्धले नेपालमा असर News
Government and World Bank complete annual review of portfolio performance News
Minimize Trade Deficit News
Nepal-China trade: free trade feasibility study on the cards News
5 reasons why Europe is great for coffee exporters News
EU-TIP Support to Capacity Building of MSMEs in Trade and Export (Nepali version) News
स्वदेशी उत्पादनलाई ‘कलेक्टिभ ट्रेडमार्ग’ आवश्यक छ : राणा News
चियाले विदेशी मुद्रा भित्र्याएको दाबी News
Around 50,000 he-goats, sheep to be brought in Valley for Dashain News
Minimize trade deficit News
Kerung is now an international border point News
Germany - Largest apparel market in the European Union News
Bangladesh permits Nepal's yarn export via Banglabandha Dry Port (Nepali Version) News
China agrees to open market for Nepalese tea News
काठमाडौंलाई व्यापारको हब बनाइने News
मुस्ताङको स्याउ बजारमा News
Nepal-China trade set to surge with Tatopani Customs re-opening News
Department of Customs and the Trade and Export Promotion Centre sign Memorandum of Understanding News
How the war in Ukraine is affecting international trade and emerging economies News
Export of Rs. 80 Billion in 6 months of fiscal year 2079/80 (Nepali) News
प्लास्टिकका फूलहरूको उत्पादन र आयातमा रोक, अबको विकल्प के? News
Rebranding the West News
Services-led growth key to Nepal’s green, resilient, and inclusive development News
Consultation meeting on Trade Policy Review held News
It is important to increase the role of TEPC News
How digitalisation is shaping the apparel industry News
नेपाली चिया अन्तर्राष्ट्रिय प्रतिस्पर्धामा अब्बल News
निकासी प्रवर्द्धन सम्बन्धी छलफल तथा अन्तरक्रिया कार्यक्रम सम्पन्न News
Nepalese Chyangra farmers trained to add value to pashmina fibres News
India hands over Jaynagar-Kurtha cross-border rail section News