Growth in Nepal this year will be slower than previously projected due to the impacts of import restrictions, monetary policy tightening, higher inflation, and shrinking government expenditure reflecting lower government revenue. The latest Nepal Development Update (April 2023): Fine-Tuning Policy in a Turbulent Environment, projects Nepal’s economy to grow by 4.1 percent in FY23, a downward revision from the October 2022 forecast. Growth is expected to accelerate to 4.9 percent in FY24, supported by the resumption of tourism, growth in remittances, and the gradual easing of monetary policy.