Asian Development Bank (ADB) on Thursday said that Nepal's economy will grow at 3.6 percent in FY2024. Making public its latest Asian Development Outlook (ADO) for April 2024, the Manila-based lender said that Nepal's economy is projected to expand by 3.6% in FY2024, a significant increase from the estimated growth of 1.9% in FY2023. ADB forecasts that GDP growth is expected to accelerate to 4.8% in FY2025, primarily driven by increased capital expenditure. Continued progress in tourism and related services is also anticipated to contribute to higher growth, assuming a favorable harvest.

The ADB in its report has said that the lingering weakness in domestic demand that continued in the first quarter of FY2024 will gradually dissipate in the remainder of the fiscal year as government investment outlays accelerate. "Private consumption expenditure will rise as remittance inflow strengthens and prices moderate, while private investment expenditure will expand on monetary easing and financial sector reforms encouraging term loans," states the ADB report.