Kathmandu. The World Bank has warned that Nepal’s economic growth rate will decline significantly in the current fiscal year. Real GDP growth is expected to slow to 2.3 percent this year as a result of recent political unrest and growing uncertainty.

According to the report, Nepal’s economic growth rate had increased from 3.7 percent in the fiscal year 2080/81 to 4.6 percent in the fiscal year 2081/82. This improvement was mainly led by the manufacturing and construction sectors. The increase in hydropower generation played a major role in this. The agriculture sector had also contributed positively to the improvement in paddy production despite the damage caused by the floods. But now the situation has changed. The World Bank expects growth to be in the range of 1.5 to 2.6 percent in the current fiscal year.

Similarly, the overall inflation declined from 5.4 percent to 4.1 percent in 2008-82. However, it is within the limit of 5 percent of the Nepal Rastra Bank. Price increases in both food and non-food items were normal, although some pressure was added when public transport fares rose.