Nepal growth projected to slow to 3.7% after Rasuwa flood: World Bank
Summary
Nepal's economic growth is projected to slow to 3.7 percent in FY2026-27 after the Aug. 26 Rasuwa flood damaged key infrastructure and disrupted industry, services and transport. The World Bank expects growth to rebound to 5.2 percent in FY2027-28 as reconstruction and rehabilitation pick up.
Key Points
- The World Bank projects Nepal's growth will slow to 3.7 percent in FY2026-27 because of damage from the Aug. 26 Rasuwa flood.
- Industrial output, services, trade, transport and financial activity are expected to face the biggest disruptions.
- The report says growth could recover to 5.2 percent in FY2027-28 as reconstruction and rehabilitation support economic activity.
- The World Bank also says AI adoption could boost productivity and public service delivery across South Asia.
