Nepal and ADB

This edition features a special analysis of the effect of remittances on financial development, investment, and economic growth in Nepal. It highlights the importance of shifting from consumption-led growth to investment-led growth strategy.

This edition of macroeconomic update's theme chapter sheds light on achievements of trade policy 2015 vis-à-vis some of its key objectives and suggests policy recommendations to strengthen Nepal's export competitiveness.

This Update provides forecasts for FY2021 and FYI 2022 growth, inflation and current account balance while analyzing Nepal’s macroeconomic performance in FY2020.  

This Update provides forecasts for FY2021 growth, inflation and current account balance while analyzing Nepal’s macroeconomic performance in FY2020.  

The country operations business plan, 2021–2023 (COBP) of the Asian Development Bank (ADB) is consistent with its country partnership strategy, 2020–2024 (CPS) for Nepal.

Nepal’s economy grew to an estimated 7.1% in FY2019. GDP growth will likely moderate to 5.3% in FY2020 largely owing to the global outbreak of COVID-19 pandemic.  

The country operations business plan (COBP), 2020–2022 of the Asian Development Bank (ADB) for Nepal is guided by ADB’s country partnership strategy (CPS), 2020–2024. The objectives of the CPS, 2020–2024 are to (i) improve infrastructure for private sector-led growth, (ii) improve access to devolved services, and (iii) promote environmental sustainability and resilience.

This Country Partnership Strategy (CPS) defines ADB's strategic approach in Nepal for 2020–2024.

Nepal's economy expanded by 7.1% in FY2019. Gross Domestic Product (GDP) is forecast to remain strong at 6.3% in FY2020. Average annual inflation is expected to rise to 5.5% in FY2020 from 4.6% in FY2019.

Nepal’s economy is anticipated to grow at 6.2% in fiscal year (FY) 2019 and 6.3% in FY2020. Inflation is projected to rise to 4.4% in FY2019 from 4.2% in FY2018.