Nepal’s Finance Minister Swarnim Wagle has projected economic growth of 3.85 per cent for the current fiscal year, presenting an encouraging picture even as global conditions remain difficult. He told Parliament that macroeconomic indicators had improved and the social sector had made satisfactory progress, despite uncertainty in the global economy and regional conflicts.
The annual Economic Survey puts the size of the Nepali economy at Rs66 trillion, with per capita gross national income projected to reach $1,535. At a time when global growth is forecast to slow to 3.1 per cent, Nepal’s expected rate was described as a positive result.
Remittances rose by 37.7 per cent to Rs1.45 trillion, whilst foreign exchange reserves climbed to a record Rs3.41 trillion, enough to cover 18.5 months of imports. The trade deficit, however, widened by 11.2 per cent to Rs1.098 trillion, identified as a continuing challenge. Inflation averaged 2.13 per cent, and the Human Development Index reached 0.622, with average life expectancy rising to 71.3 years.
