WB projects Nepal’s growth to slow following devastating Rasuwa flood
Summary
Nepal’s growth is projected to slow to 3.7% in 2027 after the August 26 Rasuwa flood disrupted industry and services, the World Bank said. The bank expects reconstruction to lift growth to 5.2% in fiscal year 2028 and urged stronger resilience in infrastructure and social protection.
Key Points
- Nepal’s growth is projected to slow to 3.7% in 2027 after the August 26 flood damaged hydropower, transport and other infrastructure.
- Reconstruction and rehabilitation are expected to support a rebound in growth to 5.2% in fiscal year 2028.
- The World Bank urged Nepal to rebuild with stronger resilience, redundancy and early warning systems, and to strengthen social protection.
- The latest South Asia Economic Update says AI adoption could boost growth, productivity and public service delivery across the region.
