Analysis by Region - Emerging Markets - Nepal

Analysis by Region - Emerging Markets - Nepal

We have lowered our 2022 GDP growth forecast for Nepal by 0.5ppts to 4.4% due to an increase in inflationary pressures that are being driven by higher food prices, elevated energy costs, and a depreciation in the exchange rate against the US dollar. The resulting rise in interest rates will weigh on growth in the near term despite recent expansionary fiscal policy ahead of this month's elections. As a result, we have also cut our growth forecast for 2023 by 1.1ppts to 2.3%.