Kathmandu, October 9, 2018: Nepal’s growth is projected to the 6 per cent of the economy in the next three years according to the South Asia Focus 2018 report published by the World Bank.
Nepali economy has a stable rate of growth despite the limited financial resources of the infrastructure and public service delivery. For the sustainable investment and maintenance of high levels of growth, the additional resources from the private sector and the engagement like a foreign direct investment (FDI) are necessary as per the report.
The federal structure will be specifically important for enhancing the capacity of implementation and revenue potential at the sub-national level of government. The revenue potential rise will be essential for the implementation of the sub-national level of government projects and programs.
The report also mentioned that the performance in Nepali Economy could fluctuate if the federal system affects the infrastructure provision and service delivery.
With the growth rate boosted, the service sector contributes 3.6 per cent points which are over 60 per cent from trade and hotels. Over 90 per cent growth is from construction and manufacturing. The fiscal budget of ongoing fiscal includes the investments for the promotion of improved inputs and storage facilities for farmers and irrigation.
According to the report, these investments focus on modernisation, commercialisation, mechanisation and the expansion of value chains. As these programmes ramp up, agriculture sector growth is expected to increase from 2.8 per cent to 4.5 per cent in the next fiscal.
Similarly, tourism is also expected to increase the economic growth rate as the country has launched the ‘Visit Nepal 2020′ campaign.