World Bank forecasts Nepal economic growth at 3.7 per cent

Economic expansion in the country is projected to reach 3.7 per cent during the Fiscal Year 2026/27, according to an evaluation released by the World Bank. The institution highlighted that disruptions from the Bhotekoshi flood on 26 August heavily impacted industrial output and service delivery, contributing to the slowed pace of growth. Despite the domestic slowdown, the broader South Asia region is anticipated to record an expansion of 6.9 per cent this year. Strong domestic demand has kept the area resilient against international economic pressures, based on the findings detailed in the Nepal Development Update, Building Back Differently for the Future. As recovery transitions into rebuilding phases, economic activity is predicted to rebound to 5.2 per cent in Fiscal Year 2027/28. The publication advises authorities to implement strategies that incorporate comprehensive hazard risk assessments, improve infrastructure siting, and build redundancy across critical communications, energy, and transport networks.