Nepal's economy to grow at 6.2 per cent in FY 2019: ADB

The Asian Development Bank on Wednesday projected Nepal's economic growth at 6.2 per cent for this fiscal year and said the country has the potential to achieve and sustain higher growth rate.

The Manila-based regional lender in its latest Nepal Macroeconomic Update released on Wednesday said the country's economy is anticipated to grow at 6.2 per cent in fiscal year 2019 and 6.3 per cent in fiscal year 2020.

"The outlook is for a stable growth on the back of strong domestic demand, fuelled by a larger budget allocation to sub-national governments and accelerated post-earthquake reconstruction, said ADB Country Director for Nepal Mukhtor Khamudkhanov.

Challenges to smooth implementation of fiscal federalism and maintaining fiscal discipline at large could pose potential risks to the outlook, he pointed out