Nepal's GDP to improve to 4.5 pc in FY 2012: ADB

The Asian Development Bank (ADB) has predicted that Nepal’s economy will improve to 4.5 percent in the current fiscal year.

Faster growth in agriculture due to good weather, tourism and remittance are the reason that Gross Domestic Product (GDP) will go up this year, said ADB.

ADB has also projected that the GDP will go down to 4 percent in the next fiscal year 2013 under the current conditions and average weather.

ADB also said the country’s economy will also depend upon the political situation – peace process and constitution drafting by May 27.

The inflation would go up to moderate 8 percent this fiscal year while it would improve to 7 percent in the next fiscal year reflecting price development in India, said ADB.

Similarly, trade deficit will likely widen further with import growth outpacing export growth. However, ADB expected that trade deficit will be offset by tourism income and remittance growth due to higher outflow of Nepalis for overseas job in this fiscal year. nepalnews.com