World Bank projects Nepal growth at 3.7%
Summary
The World Bank has projected Nepal’s economic growth at 3.7% in FY 2026/27, citing disruptions from the Bhotekoshi flood and damage to industry, services and infrastructure. The bank says reconstruction, stronger resilience planning and wider AI adoption could support a faster recovery in the years ahead.
Key Points
- The World Bank projects Nepal’s GDP growth at 3.7% in FY 2026/27, down from 3.9% in FY 2025/26 and 4.4% in FY 2024/25.
- The Bhotekoshi flood damaged hydropower, solar, transmission and transport infrastructure, weighing on industry and services.
- The bank says recovery could lift growth to 5.2% in FY 2027/28 if reconstruction and restoration move quickly.
- A separate South Asia Economic Update says AI adoption is rising in the region and could improve productivity and public services, including health and education.
