According to the World Bank Nepal’s Development Update report, Nepal is grappling with slow economic growth and rising inflation for FY23-24. Continuing from last year’s economic downturn, the country recorded a 1.9% growth rate, a fiscal deficit of 6.1% of GDP, and an average inflation rate of 7.8%. The bank anticipates a 3.9% growth rate for 2023-24, lower than the government’s 6% prediction. The agriculture sector, accounting for a quarter of the GDP, is projected to dip to 2.1% from 2.7% in 2022-23. Inflation is expected to remain high, affecting disposable incomes and consumption, with the government aiming to maintain it at 6.5%.