Should Nepal reconsider graduation from LDC after recent upheaval?
Summary
Experts urge Nepal to reconsider its 2026 graduation from Least Developed Country status due to economic vulnerabilities and recent unrest impacting investment and growth prospects.
Key Points
- Nepal is scheduled to graduate from Least Developed Country (LDC) status in November 2026, but experts suggest reconsideration due to recent economic and social upheavals.
- The September protests caused significant damage to private and public assets, job losses, and further weakened Nepal's already fragile economy.
- Nepal has not met the income threshold required for LDC graduation and faces challenges attracting foreign investment amid deteriorating business climate and law and order conditions.
- The World Bank projects Nepal's economic growth to slow to around 2.1% for the current fiscal year, significantly lower than earlier forecasts, with tourism and service sectors hardest hit.
