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Nepal should attract investment from China to achieve economic growth: ADB

(Xinhua) Updated: 2016-03-30 17:25

KATHMANDU - Asian Development Bank (ADB) suggested that Nepal should grab the opportunities from neighbor China to achieve the targeted economic growth rate for the next two years.

Launching Asian Development Outlook 2016 here on Wednesday, ADB said Asia's leading economy China's structural change in imports can create immense opportunities for the border-sharing Nepal.

"China's structural change is a golden chance for Nepal. Thus, it's perfect time to attract direct foreign investment from the northern neighbor to strengthen economy," Kenichi Yokoyama, ADB Country Director for Nepal, said while addressing the program.

ADB has projected a 1.5-percent economic growth rate of the quake ravaged Nepal for the fiscal year 2016 after a 3-percent growth last year.

ADP projected a slow growth pace for this year in regard to slow post-earthquake reconstruction, trade and transit disruption followed by months-long economic blockade and unfavorable monsoon creating troubles in agriculture sector.

However, the growth rate is expected to pick up to 4.8 percent in 2017 through stabilization of political climate, acceleration of reconstruction and normal monsoon favoring agricultural growth.

ADB is of view that there is an urgent need to accelerate reconstruction and implementation of development programs to prevent a further slowdown in economic growth.

The economic growth of Himalayan country is possible only through the speedy reconstruction drive and focusing on sectors of energy, tourism and agriculture, the bank said.

Nepal witnessed an inflation rate of 7.2 percent in 2015 whereas it was significantly higher in January this year, standing at 12.1 percent.

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