NRB says 7% growth target within reach if reforms stay on track
Summary
Nepal Rastra Bank projects Nepal's economy can reach a seven percent growth target in fiscal year 2026/27 if key reforms and public spending are implemented effectively.
Key Points
- Nepal Rastra Bank forecasts a 7% economic growth in fiscal year 2026/27 if policy reforms and public capital expenditure proceed as planned.
- The economy grew by 3.85% in the current fiscal year, below the potential 4.2% growth rate.
- Services sector, supported by remittances, tourism, and digital services, is expected to be the main growth engine next year.
- Downside risks include climate disruptions from El Niño, delays in capital spending, and geopolitical tensions affecting trade and investment.
