KATHMANDU : Nepal will fall short of its growth target, a top government official said on Thursday, underscoring the troubled state of an economy grappling with a pandemic-induced loss of tourism, a widening trade deficit and soaring commodity prices.
Nepal's GDP target of 7per cent growth for the financial year to mid-July will be missed and growth could be"limited to only 4per cent," a senior government official with the direct knowledge of the matter told Reuters.Sky-high prices for crude oil, coal and edible oils in the wake of Russia's invasion of Ukraine have battered Nepal's economy which had been gradually recovering from large losses of tourist dollars during the pandemic.
Fuelled by higher commodity prices, surging inflation is also making life much tougher for many Nepalis. Kshetry said retail inflation, currently at a five-year high of 7per cent, could reach double-digit figures by the end of the financial year. She added that her monthly income of $90 can barely cover her daughter's school expenses and two simple meals of rice and lentils for them each day.