Positive Economic Forecasts Propel Optimism in the Nepali Stock Market

Kathmandu, Nepal - Recent data from the Asian Development Bank's April 2024 Outlook reveals promising economic forecasts for Nepal, fostering a positive sentiment among investors and stakeholders in the Nepali stock market. Despite a temporary dip in GDP growth in 2023, where it fell to 1.9%, projections for 2024 and 2025 show a robust recovery, with expected growth rates of 3.6% and 4.8%, respectively.

The inflation rate, which peaked at 7.7% in 2023, is also forecasted to decrease to 6.5% in 2024 and further to 6.0% in 2025, indicating a stabilizing economy conducive to investment. Moreover, the per capita GDP growth rate is expected to improve significantly from a mere 0.9% in 2023 to 2.6% in 2024, and further to 3.8% in 2025.

In comparison to its South Asian neighbours, Nepal's economic resilience and recovery are noteworthy. Such optimistic economic indicators are vital for the Nepali stock market as they suggest an improving economic environment, increased consumer spending, and better corporate profitability. Investors are advised to consider these positive trends when planning their investment strategies, as the upcoming years look promising for Nepal's economic landscape.