World Bank Governor's Statement - No. 13 - Statement by the Hon. Bishnu Prasad Paudel

Jul 19, 2026

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Statement by the Hon. Bishnu Prasad Paudel, Governor of the IBRD for Nepal, at the 2024 World Bank Group and IMF Annual Board Meeting. It highlights global economic stabilization, remaining inflation risks, and widening gaps affecting low-income countries after the pandemic and cost-of-living pressures. The statement calls for structural reforms, credible fiscal consolidation, investment in climate resilience, and productivity support while warning that AI may disrupt labor and financial markets. It emphasizes Nepal’s poverty challenges and goals.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages7

Reading Time18 min

Statement by the Hon. Bishnu Prasad Paudel, Governor of the IBRD for Nepal

Global economic conditions and short-term risks

Development challenges for low-income and heavily indebted countries

Productivity, technology, climate resilience, and investment priorities

Global cooperation and responsibilities of advanced economies

Poverty reduction and Nepal’s development goals

Public Disclosure Authorized Public Disclosure Authorized World Bank Governor's Statement No. 13 October 25, 2024 Statement by the Hon. BISHNU PRASAD PAUDEL, Governor of the IBRD for NEPAL Statement by the Hon. Bishnu Prasad Paudel, Governor of the IBRD for Nepal Mr. Chairman Mr. Ajay Banga, President, The World Bank Group Ms. Kristalina Georgieva, Managing Director, IMF Fellow Governors and Alternate Governors, Distinguished Delegates, Ladies and Gentlemen 1. I am truly honored to participate in the 2024 Annual Board Meeting of Governors of the World Bank Group and the International Monetary Fund. On behalf of my delegation and my own, I sincerely commend the entire management team of the Bank and the Fund for their tireless efforts in making this annual meeting highly organized and successful. 2. We gather here when the global economy is coming back with stable growth and inflation returning to target levels. Despite many pessimistic predictions, the world successfully avoided recession, the banking system largely remained stable, and major emerging market economies did not face sudden downturns. Additionally, while inflation surged and created a cost-of-living crisis, it did not trigger wageprice spirals. However, there are some short-term risks to consider, including a potential increase in inflation due to slow progress in reducing service costs and price pressures arising from trade or geopolitical tensions. 3. It is disheartening to note the widening gap between many low-income developing countries and the rest of the world. These countries are still grappling with the aftermath of the pandemic and the cost-of-living crisis and with the ongoing political conflicts adding to the loss of life and increased uncertainty. To address these challenges, it is crucial to invest in structural reforms that encourage growthenhancing domestic and foreign investment and improve domestic resource mobilization. These efforts can help manage borrowing costs and financing needs while advancing development goals. We must also focus on enhancing the knowledge and skills of the young population. 4. The heavily indebted emerging markets face the problem of rising real interest rates despite decreasing inflation, which eventually leads to less favorable sovereign debt dynamics. These countries must implement credible fiscal consolidations to reduce the cost of capital and enhance financial stability. On the other hand, prioritizing the rising fiscal demands for safety nets, climate adaptation, digital transformation, energy security, and defense is essential. 5. The decline in total factor productivity is critical for medium-term growth prospects, mainly due to the inefficient allocation of capital and labor within sectors and countries. There is considerable optimism that artificial intelligence will drive significant productivity improvements, but it also carries a high risk of severe disruptions in labor and financial markets. Rising geoeconomic fragmentation and increased trade restrictions also hinder medium-term growth prospects. Consequently, this trend undermines global cooperation and multilateralism. 6. Significant global investments are essential for a sustainable and climate-resilient future. Reducing emissions can go hand in hand with economic growth, as demonstrated in recent decades when growth has become much less emissionsintensive. Robust collaboration for climate change adaptation is crucial for resilient and sustainable development. Mr. Chairman, 7. I believe that this global forum will help address the risks, encourage effective policy responses, and take decisive actions to support the global economy for higher growth. 8. It is obvious that countries possess varying economic strengths. As leaders in the global economy, we believe that advanced economies bear greater responsibilities for ensuring global economic stability and supporting economic growth in the least developed and low-inc

FAQs

What does the statement say about the global economy’s current outlook?

It notes stable growth and inflation returning toward target levels, while emphasizing remaining short-term risks such as potential inflation increases and pressures from trade or geopolitical tensions.

What challenges affecting low-income developing countries are highlighted?

The statement describes the widening gap, ongoing pandemic and cost-of-living impacts, conflict-related loss of life, and increased uncertainty, requiring structural reforms and improved domestic resource mobilization.

How does the statement address Nepal’s development priorities and poverty context?

It states that Nepal still faces significant poverty worsened by climate change, and it outlines efforts toward sustained growth, equitable resource distribution, social security, and safety nets, aiming to meet fundamental rights and graduate from LDC status by 2026.

Jul 19, 2026

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