The Asian Development Bank (ADB) and World Bank, in separate growth forecast reports on Tuesday, have estimated that the economic growth forecast, gross domestic product (GDP), for Nepal will reduce to 4.1% this fiscal year from earlier projected 4.7%.

In the first quarter of this fiscal year 2022/23, Nepal’s GDP growth remained at 0.8 percent, which is significantly lower from the same time in the previous year at 3%.

“There are downside risks to the outlook such as a global downturn hitting Nepal’s tourism and remittance receipts,” said ADB Country Director for Nepal Arnaud Cauchois.

Meanwhile, the report by World Bank states economy of Nepal will have slower growth than projected due to the impacts of import restrictions, political instability, monetary policy tightening and higher inflation.

GDP provides information about the size of the economy and how an economy of a nation is performing. The growth rate of GDP serves as an indicator of the general health of the economy of a country.