World Bank Projected Nepal's Economic Growth to be Limited to 0.6 Pc in Current FY:
According to the World Bank, the Coronavirus epidemic will increase poverty in Nepal and reduce economic growth. The Coronavirus epidemic has affected all sectors of the economy, with the World Bank predicting that workers in the informal sector will be hit the hardest, and more people will be pushed into poverty.
According to the bank, half of Nepal's industries and employment are informal and the lockdown has had a major impact on this category. Urban informal sector workers and urban self-employed households are most at risk, the bank said. According to Faris Hadad Jarves, country director of the World Bank, workers in the informal sector have been hit the hardest by the epidemic. According to him, the impact of the Corona epidemic on the economy and its impact on the livelihoods of people across Nepal has had a huge impact on workers working in the informal sector, people not covered by social security and assistance. "They are most likely to be severely affected and pushed into extreme poverty," he said.
About 50 percent of the informal businesses in Nepal are enterprises. These enterprises are the main source of income for most workers. Of these groups, urban informal sector workers and urban self-employed households are most at risk, the report said. The report also mentions that COVID 19 was the hardest hit in Nepal's economy. Also, the South Asia Level Economic Report published by the Bank on Thursday estimates that Nepal's economic growth will be limited to 0.6 percent in the current fiscal year. The economic growth rate of Nepal, which was limited to 0.2 percent last fiscal year due to the coronavirus epidemic, is estimated to reach only 0.6 percent in the current fiscal year.
The bank estimates that the ban imposed by the government to control cobwebs will slow down economic growth, especially in the tourism sector. The government has set a target of 7 percent economic growth in the current fiscal year. However, the bank's report shows that the government's goal will not be achieved as the Corona epidemic is on the rise. Releasing its South Asia-level economic report, the bank said it would still take time to recover from the downturn.
The bank concludes that South Asia's economy is in recession due to the effects of the epidemic. Earlier, the Asian Development Bank had projected a growth rate of 2.3 percent last fiscal year and only 1.6 percent this year.
