Nepal growth

The ADB's Asian Development Outlook says Nepal’s economic growth will stabilise at 4.1% in 2023 after a growth of 5.8% in 2022. Nepal’s GDP is projected to slow due to the monetary policy, low domestic demand, Covid-19 and global effects. Agricultural growth is expected to decrease to 2.0% from 2.3% as scanty rainfall has affected crop yield. Industry growth is likely to decelerate from high interest rate, import restriction measures, slow consumption and low external demand. Service sectors, on the other hand, will grow from 4.4% to 5.9% with a boost in tourism. The country’s inflation is expected to increase up to 7.4% from 6.3% despite the monetary policy.