ADB forecasts GDP growth at 4.6 percent

KATHMANDU, Sept 4:

The Asian Development Bank (ADB) has forecast that the Gross Domestic Product (GDP) growth of Nepal will be confined to only 4.6 percent, against the Nepal government´s target of 6 percent.

The Bank in its detailed economic periodic report of the fiscal year 2013/2014 has forecast that the agricultural sector would feel the negative impact of the subnormal monsoon season in 2014 which saw low rainfall in the first few weeks, and the resultant flooding and landslide after it gained its full form.

As compared to the last six years, the services sector growth remained at 6.1 per cent in the last fiscal year. The report hoped that inadequate contribution from the agricultural sector in the GDP growth would be balanced by the service sector´s contribution.

Nepal is facing a great want in the infrastructure sector in relation to creating a base for graduation from the LDC to developed country status by 2022.

The report has advised Nepal for result-oriented and qualitative increment in the capital spending and called for realizing the objectives of social development considered crucial for inclusive economic growth.

The report also mentions that the economic activities initiated without giving due attention to environmental sustainability would have negative impacts on sustainable development.

The high and sustained economic development would be necessary for poverty reduction and creating productive employment, the ADB said.

Source: Republica