Nepal’s GDP to Grow by 0.2% in 2020: World Bank

Kathmandu: The World Bank has projected Nepal’s economy to grow by only 0.6 percent in 2021.

 

The bleak picture is a result of lockdown imposed to contain coronavirus causing disruption to economic activity, especially the tourism sector.

 

The World Bank’s latest South Asia Economic Focus however says the projection for 2021 is however up from an estimated 0.2 percent growth in 2020.

 

The twice-a-year-regional update released yesterday notes that South Asia is set to plunge into its worst-ever recession this year as the devastating impacts of the pandemic on the region’s economies linger on. The pandemic has taken a disproportionate toll on informal workers and pushed millions of South Asians into extreme poverty, says the report.

 

The report forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 percent in 2020. The growth was above 6 percent annually in the past five years. Regional growth is projected to rebound to 4.5 percent in 2021.

 

A decline in remittances is also expected to accelerate loss of livelihoods for the poorest in some countries, according to the World Bank.