The World Bank projects that political instability following the Gen Z movement in September and subsequent developments will slow Nepal’s economic growth. Nepal’s growth rate is projected to fall from 4.6 per cent in the fiscal year 2025/26 to 2.1 per cent in 2026/27.
In the following two fiscal years, reconstruction work is expected to boost growth to around 4.7 per cent, according to Nepal Development Update from the World Bank.