Banking Khabar/The World Bank has sharply reduced Nepal’s economic growth projection for fiscal year 2025/26 to just 2.1%, citing ongoing political instability, protests, and weak private investment.
The Bank’s South Asia Development Update warns that if unrest continues, growth could dip even lower. Earlier this year, Nepal’s economy was expected to grow by over 5%, but disruptions in tourism, agriculture, and infrastructure projects have slowed momentum.
The report suggests that stronger reforms and stability will be essential for recovery in 2026/27.
