Nepal’s growth projected to slow following devastating Rasuwa flood: WB
Summary
Nepal’s economic growth is projected to slow to 3.7 percent in FY 2026/27 after the August 26 Rasuwa flood disrupted industry and services, according to the World Bank. The bank says reconstruction could lift growth to 5.2 percent in FY 2027/28 and urges stronger resilience in infrastructure and disaster planning.
Key Points
- Nepal’s growth is projected to slow to 3.7 percent in FY 2026/27 after damage from the August 26 Rasuwa flood hits industry and services.
- The World Bank says reconstruction and rehabilitation should help lift growth to 5.2 percent in FY 2027/28.
- The report calls for more resilient infrastructure, stronger early warning systems, and better social protection for vulnerable households.
- A separate South Asia Economic Update highlights AI’s potential to boost productivity and public service delivery across the region.
