Kathmandu: The World Bank (WB) has unveiled its projections for Nepal, anticipating a robust five percent economic growth rate in the fiscal year 2024/25. The recently issued 'Global Economic Prospectus, 2024' emphasizes positive developments in Nepal's economic landscape for the upcoming fiscal year, showcasing improvement compared to the current year's growth rate of 3.9 percent.

The expected economic growth is attributed to advancements in the industry and service sectors, coupled with the positive impact of a flexible monetary policy and the removal of certain import restrictions, as stated by the World Bank.

However, amidst these positive forecasts, the global economic landscape is anticipated to grapple with ongoing challenges in 2024. Factors such as the adoption of tight monetary policies by central banks in major economies and the slow recovery of world trade and investment are identified as contributors to a lower global economic growth rate.

Furthermore, concerns over inflation and high-interest rates are expected to have adverse effects on consumers and the monetary market. The World Bank's global economic growth rate projection for 2024 stands at 2.4 percent.

This forecast suggests a mixed outlook, with Nepal positioned for significant economic growth, while global economic challenges persist.