Kathmandu, 15 April: Nepal’s economy, led by recovery of the services sector amid high Covid vaccination rates, is expected to grow by 3.7 percent in the current fiscal year and 4.1 percent in FY2022/23. However, growth is projected to be slower than previously projected, mostly due to the impacts of the war in Ukraine, says the World Bank in its regional update. According to the latest ‘South Asia Economic Focus Reshaping Norms: A New Way Forward’ projects the region to grow by 6.6 percent in 2022 and by 6.3 percent in 2023. The 2022 forecast has been revised downward by 1.0 percentage point compared to the January projection. Countries in South Asia are already grappling with rising commodity prices, supply bottlenecks, and vulnerabilities in financial sectors. The war in Ukraine will amplify these challenges, impacting Nepal’s growth, inflation, and current account balances. People’s News Monitoring Service