Analysis by Region - Emerging Markets - Nepal
We have raised our 2023 GDP growth forecast for Nepal by 1.7ppts to 4% to reflect China's reopening, stronger industrial production, and an improvement in tourism. Still, this represents a moderate slowdown from the strong post-pandemic 5.6% y/y rebound in 2022. We think higher inflation, tighter monetary policy, and trade restrictions will add headwinds to growth prospects this year.
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