KATHMANDU

Nepal Rastra Bank Governor Maha Prasad Adhikari has said that there is a sluggishness in the country’s economy. Speaking at the 10th annual program of Corporate Nepal, Governor Adhikari mentioned that the current economy of the country is facing a slowdown.

According to the data estimated by the Central Bureau of Statistics for the last fiscal year (2079–80), the economic growth rate achieved is less than 2 percent. Although the target was to achieve 6 percent economic growth in the current fiscal year, the indicators show that the economic growth is not as per the target. Governor Adhikari mentioned, ‘The data estimated by the Central Bureau of Statistics for the last fiscal year shows that the economic growth rate achieved is less than 2 percent. Although we hope to achieve 6 percent economic growth this year, the indicators are not showing that we will reach there.’

Similarly, Governor Adhikari also mentioned that some parameters of the economy have weakened. He highlighted that there are areas in the economy where improvements can be made by utilizing the strengths of the economy.

Governor Adhikari claimed that the external sector of the economy is also weak. He mentioned that the capacity to increase imports of goods and services by 7 months has reached more than 12.3 months, exceeding the target set by the central bank. Inflation is also around 5 percent, the bank’s interest rate has been decreasing, and the policy rates have been reduced, as stated by the official.

Due to the increase in current expenditure and financial management to raise economic resources for the government, the challenge lies in increasing capital expenditure and placing the required amount on top of it, as mentioned by Governor Adhikari. He also stated that, when looking at the overall economy, the banking sector is strong.