The World Bank projected Nepal's economic growth to be limited to 6.5 percent in 2020, which is 7.1 percent in 2019.
Nepal's economic growth is achieved due to the remarkable contribution of remittance, services and agricultural sectors. The next year's economic growth is projected to shrink economic growth due to declining remittance flows, climate change and natural disasters, irregular monsoon.
In the 'Nepal Development Update' report released by the bank here today, the arrival of more tourists, the visit of Nepal 2020, the construction of the second international airport is almost complete and the construction of big hotels and new deals with international airlines are depicted as positive indicators of the economy.
Although unprocessed paddy seeds, military insect outbreaks will reduce agricultural production, new investments in cement and hydropower sector are expected to increase industrial output. Performance agreements in government offices are believed to improve government spending.
Establishment of a Nepal Infrastructure Bank, implementation of a one-door service center for investment, and the establishment of separate bodies for the delivery of investment-related services under the office of the Prime Minister and Council of Ministers are expected to increase economic activity.
Similarly, due to the low cost of federalism and some slowdown in post-earthquake reconstruction, imports have been declining somewhat, while there has been a sharp reduction in imports.
