The World Bank has predicted that Nepal's economic growth rate will be 4.5 percent in the fiscal year 2024/25. This is more than last financial year 2023/24. In the last fiscal year, there was an economic growth of 3.9 percent.

According to the World Bank, although major natural disasters such as floods and landslides will decrease towards the end of 2024, the economic growth rate will improve.

The World Bank published on Thursday the 'Nepal Development Report: Leveraging the benefits of entrepreneurship and implementing reforms to boost economic growth' has predicted an improvement in economic growth this year compared to last year.

This year, mainly due to the increase in internal trade, hydropower and rice production, the report says that the economic growth will improve. The report predicts that Nepal's economy will achieve an average economic growth rate of 5.4 percent in 2025/26 and 2026/27, in which the impact of the service sector will be significant.

It is imperative that Nepal promotes economic growth led by the private sector to create the necessary jobs. To achieve this, Nepal needs to implement major structural reforms, building on its impressive history of resilient growth,” said David Sislen, World Bank Country Director for the Maldives, Nepal, and Sri Lanka. The

report also points to potential risks (reduced investment due to lower expected returns) in Nepal's economic landscape, including geopolitical and trade uncertainties. It also mentions the possibility of a further decline in credit quality in Nepal's financial sector, as well as the risk of policy inconsistency caused by the government's frequent transfer of employees and delays in the implementation of the capital budget.

Nepal's 16th plan goals need to be strengthened to achieve the economic growth, effective capital budget implementation and timely completion of current projects is necessary, said the Honorable Vice Chairman of the National Planning Commission, Professor Shivraj Adhikari.