ADB Projects Nepal's Economic Growth to Slow to 2.7 Percent in 2026
Summary
The Asian Development Bank projects Nepal's economic growth rate will slow to 2.7 percent in 2026 due to political uncertainty and the Middle East conflict, with inflation expected to rise and challenges in the financial sector.
Key Points
- The Asian Development Bank forecasts Nepal's economic growth to slow to 2.7 percent in 2026, down from 4.6 percent in the previous year.
- Political uncertainty and the Middle East conflict are major factors expected to slow economic growth and affect oil prices, tourism, and remittances.
- Inflation is projected to rise from 3.7 percent to 4.5 percent over the next two fiscal years due to expanded domestic economic activities.
- Significant risks include weak capital budget implementation, financial sector vulnerabilities, climate-related disasters, and fluctuations in international oil prices.
