KATHMANDU, April 3 (Xinhua) -- Nepal's economy will grow 4.5 percent in the current 2024-25 fiscal year, up from 3.9 percent in the previous fiscal year, the World Bank said on Thursday.

The bank made the forecast despite the country suffering from significant natural disasters in 2024 and disruptions in tourism sector because of reduced operation hours over upgradation at the Tribhuvan International Airport in Kathmandu.

"Floods and landslides caused damage equivalent to 0.8 percent of GDP, severely impacting infrastructure, agriculture and social services," the bank said in its latest "Nepal Development Update" report.

"Growth is expected to be driven by increased domestic trade, hydropower generation and paddy production," the report said.

It noted that Nepal's real GDP grew 4.9 percent during the first half of 2024-25, up from 4.3 percent over the same period of 2023-24, due to growth in agricultural and industrial sectors.

The report projected a 5-percent inflation for Nepal in 2024-25.

In a March report, the World Bank forecast a growth rate of around 4 percent until 2029 for the South Asian country during its 16th five-year plan period. Enditem

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