Analysis by Region - Emerging Markets - Nepal
We've raised our 2024 GDP growth forecast for Nepal by 0.4ppts to 3.4% but cut our 2025 projection by 1.4ppts to 5.2%. The economy continues to gain traction from a surge in tourism, softening inflation, and resilient remittances. All of these factors are supporting domestic consumption by boosting household incomes. Despite an increase in non-performing loans, the liquidity situation has improved. So, we expect further monetary easing from the Nepal Rastra Bank, which will likely increase economic activity.
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