ADB estimates Nepal's growth rate at 6.2% for FY 2075/76

Asian Development Bank (ADB) has estimated that Nepal's economic growth rate for FY 2075/76 and 2076/77 will stand at 6.2% and 6.3% respectively. Similarly, for agricultural sector assuming that the good moonson will increase paddy producton by 8.4%, the growth rate of agricultural sector will stand at 4.5% for FY 2075/76.

Similarly, the industrial sector is estimated to grow by 7.1% especially due to improved electricity generation and investment environment.

The inflation rate is estimated to reach 4.4% this year from 4.2% of FY 2074/75.

Due to proper revenue collection and late capital expenditure, the budget in in surplus. The GoN has spent only 32.4% of the estimated budget for capitak expenditure till Chaitra 20.

The report states that as of Magh 2075/76 the current account deficit stands at USD 1.5 billion, which was USD 1.4 billion in the corresponding period of previous year. Even if the remittance income is good and the fuel prices remain stable, the current account deficit is estimated to rise to 9.3% due to high import of goods and services.