IMF projects Nepal’s economic growth at 3.6 percent amid rising oil prices
Summary
The IMF projects Nepal’s economy to grow by 3.6 percent in FY 2026/27, with inflation expected to rise again after a brief easing. Rising global oil prices and Middle East tensions pose a major risk to Nepal’s import-dependent economy.
Key Points
- Nepal’s economy is projected to grow by 3.6 percent in fiscal year 2026/27, staying below 4 percent for a second year.
- The IMF expects inflation in Nepal to ease in 2026 before rising to 5.8 percent in 2027.
- Rising international oil prices and Middle East conflict are seen as major risks to Nepal’s economic outlook.
- The IMF says global AI-related investment is supporting growth in major economies such as the United States and India.
