Bhotekoshi floods prompt ADB to cut Nepal’s growth forecast to 4.1 percent
Summary
The Asian Development Bank has cut Nepal’s growth forecast to 4.1 percent for 2026-27 after the Bhotekoshi floods damaged infrastructure, disrupted trade and tourism, and raised inflation and fiscal pressures. The government says rebuilding flood-hit roads, hydropower and other assets could cost hundreds of billions of rupees.
Key Points
- The ADB lowered Nepal’s growth forecast by 0.4 percentage point to 4.1 percent, citing the economic damage from the Bhotekoshi floods.
- The floods are expected to push inflation up to 5.3 percent and widen the fiscal deficit as reconstruction spending rises.
- Nepal’s tourism sector and hydropower infrastructure suffered major losses, with the government estimating Rs723.31 billion needed for rebuilding.
- Despite the shock, the ADB says Nepal’s external position remains comfortable, supported by remittances and strong foreign exchange reserves.
