Contrary to projections by the government and the UN, Asian Development Bank (ADB) has projected lesser growth rate for Nepal – at 3.8 percent this year.
In its annual report published in Kathmandu Wednesday, ADB stated that the growth rate would be marred by the rising inflation, which it said would remain at 7 percent.
However, the projection is based on assumption that the peace process would go smoothly and Nepal will attain political stability after the constituent assembly election scheduled for next week.
While the bank highlights the importance of agriculture in economic development in Asia, ADB report showed that agriculture productivity in Nepal decelerated to 0.7 percent from 1.1 percent the previous year.
Scaling up capital spending on infrastructure and social sector, continuation in key structural reforms and rising global oil prices are the major challenges indicated by the bank that Nepal will face shortly.
The bank expects Asian economic growth to accelerate, with India and China taking lead. Agricultural sector will have the highest growth and terms the phase to be the era of second green revolution. nepalnews.com ia Apr 02 08
