As per the bank, Nepal’s economy limited to a growth of 0.2 percent in the last FY. However, the government of Nepal has projected to achieve a growth of 7 percent in the current FY.
The bank stated that the economies like Nepal that rely on external sources of growth such as tourism, the recovery from the pandemic caused by COVID-19 is likely to be particularly modest.
In the South Asian Region, India and Bhutan will have negative growth of 9.6 percent and 0.7 percent respectively.
The bank projected the growth rate of Pakistan to be at 0.5 percent and Bangladesh at 1.6 percent.
Moreover, the global economy is expected to expand 4% in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year. A recovery, however, will likely be subdued, unless policymakers move decisively to tame the pandemic and implement investment-enhancing reforms, the World Bank says in its January 2021 Global Economic Prospects.
