KATHMANDU, Mar 25 (NNN-XINHUA) – Nepal’s growth rate will hover around four percent until 2029, though it has set an ambitious target of 7.1 percent, the World Bank said, yesterday.
Current policies fall short of achieving Nepal’s ambitious growth targets, the bank said, in its report titled “Unlocking Nepal’s Growth Potential: Nepal Country Economic Memorandum 2025.”
“The 16th (five-year) plan, envisions an average annual real GDP growth rate of 7.1 percent until 2029, far above historical averages,” the report said. “Baseline projections, however, estimate that potential long-term real growth will hover around four percent.”
Nepal’s economy grew by an average of 4.2 percent between 1996 and 2023, which was ranked at sixth, among the eight countries in South Asia.
Migration abroad and the inflow of remittances have contributed to poverty reduction and economic resilience in Nepal, but its economy has struggled to keep pace regionally and globally, and has not generated enough quality jobs in non-agricultural sectors, the World Bank report said.
“Significant structural challenges continue to constrain domestic economic growth and job creation,” noted the report.– NNN-XINHUA
