Nepal’s growth to slow to 3.7 percent after devastating Rasuwa flood
Summary
Nepal’s economic growth is projected to slow to 3.7 percent this fiscal year after the devastating August 26 Rasuwa flood damaged hydropower, transport, trade and tourism infrastructure. The World Bank says reconstruction could lift growth to 5.2 percent next year if Nepal rebuilds more resilient systems.
Key Points
- The World Bank has cut Nepal’s growth forecast to 3.7 percent for the current fiscal year, citing widespread flood damage to industry and services.
- Direct economic damage from the flood is estimated at $1.66 billion by the World Bank, while the government’s assessment puts total physical damage at $1.81 billion and reconstruction needs at about $4.8 billion.
- Hydropower plants, transmission lines and the Galchhi–Rasuwagadhi trade corridor were heavily damaged, disrupting electricity generation, trade and domestic supply chains.
- Tourism has also been hit, with hotels, trekking routes and pilgrimage access affected ahead of the autumn travel season, while the World Bank says recovery should focus on building back differently.
