World Bank Projects Nepal's Economic Growth to Slow to 2.3 Percent

Kathmandu. The World Bank has projected that Nepal's economic growth rate will shrink to 2.3 percent. The World Bank attributes this limited growth to the ongoing conflict in the Middle East and the impact of the Gen-Z movement.The latest Nepal Development Update shows a significant decline from the 4.6 percent growth rate recorded in the previous fiscal year 2025. Looking ahead, reconstruction activities, continued expansion of hydropower, and increased consumption due to the local elections in 2027 are expected to push Nepal's average economic growth to 4.4 percent in the fiscal year 2027-2028.The Nepal Development Update report, titled 'Economic Growth...