Nepal and ADB

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.

Nepal’s economy grew by 5.9% (at basic prices) in 2018, down from 7.4% a year earlier largely on the back of subdued agriculture output, as a result of floods of August 2017.

The country operations business plan (COBP), 2019–2021 of the Asian Development Bank (ADB) is consistent with ADB’s country partnership strategy (CPS), 2013–2017 for Nepal, which focuses on infrastructure and human capital development, and agricultural transformation. It is also aligned with the Government of Nepal’s Fourteenth Plan, FY2017–FY2019.

Nepal's GDP is forecast to grow by 4.9% in FY2018 and 5.5% in FY2019. Average annual inflation is expected to rise moderately to 5.5% in FY2018 from 4.5% in FY2017.