ADB Projected Nepal's GDP at 5.3% in Current Fiscal Year:
Nepal's economy is also going to be affected by the Corona crisis amid the possible threat of an economic slowdown in all countries of the world. The Asian Development Bank (ADB) has given alarming signals to Nepal's economy and said that given the current situation, it is feared that Nepal's GDP will fall further and will be 5.3 percent. Nepal's GDP was 7.3% in the last financial year i.e. 2018-19. The ADB had earlier said that Nepal's GDP could be 6.3 percent this year, but now in its latest report, it has indicated it to fall further due to the Corona crisis.
This is the first report issued by any international financial institution since the COVID-19 outbreak. It added that the lockdown, especially since March 24, would prove extremely damaging to Nepal's economy.
The report has cited the shutdown of work in industry and services. Already, due to late monsoon, crop failure and its worst impact on rice crops, in particular, the economy was expected to be affected badly, now Corona and lockdown have made the situation more worrisome.
The tourism industry of Nepal is completely lost at this time and its direct impact is visible in all the places from hotel business.
