Nepal may see negative growth after unrest, World Bank warns
Summary
Nepal's economic growth is projected to slow to 2.1% or possibly contract due to September's violent unrest and October's heavy rainfall, with significant impacts on tourism, investment, and job creation.
Key Points
- The September unrest involving young protesters caused significant economic damage, lowering growth projections to as low as a negative 2.6 percent.
- The World Bank warned that damages to private and public property will deter investment, critical for Nepal's planned graduation from Least Developed Country status by 2026.
- Tourism and agriculture sectors are expected to be severely hit, with tourist arrivals already down 18% in September and delayed monsoon affecting farm outputs.
- The upcoming March 2026 election is viewed as crucial for political stability and economic recovery, with uncertainties posing risks for further economic crises.
