Due to the global economic recession, the economic growth rate of Nepal is seen to shrink to 2.16 percent: Finance Minister

Kathmandu: Finance Minister Dr. Prakasharan Mahat has said that the economy of Nepal has also been affected this year due to the global economic recession and the economic growth rate is expected to shrink to 2.16 percent.

Releasing the economic survey 2022/24 in the Federal Parliament today, he said that the slowdown in world economic activity in the early days of 2023 has had a direct impact on Nepal’s economy.

Its impact on wholesale and retail trade, construction and manufacturing industries, including overall economic activity has contracted, and the economic growth rate of the current financial year is projected to be only 2.16 percent.

Finance Minister Dr. Mahat also said that due to the increase in the prices of petroleum products and food grains in the world market, there has been pressure on the prices of goods along with overall imports.

However, recently, due to the continuous decrease in the price of petroleum products, it has been seen that the consumer market price of other goods and services will also decrease, he added.

He said that the external sector of the economy has also improved due to tightening of imports, improvement of remittances and other aspects to preserve foreign exchange reserves in the past.

Finance Minister Dr. Mahat also said that the improvement of the tourism sector has provided encouragement.