24th October 2024, Kathmandu
Nepal’s economic growth is projected to accelerate to 5.1% in FY25, up from 3.9% in FY24, driven by a surge in tourist arrivals and increased hydropower and agricultural production, according to the World Bank’s latest Nepal Development Update: International Migration and Well-being in Nepal. The growth rate is further expected to rise to 5.5% in FY26.
Nepal’s Economy Grow By 5.1%
The report highlights the role of the private sector in fueling the recovery, benefiting from eased monetary policies and relaxed regulatory requirements by the central bank. However, risks such as rising non-performing loans, delays in infrastructure development, and regional trade disruptions could limit growth.
“Nepal is on a gradual recovery path,” said Prof. Dr. Shiva Raj Adhikari, Vice Chairman of the National Planning Commission. He emphasized that reforms in budget processes and capital expenditure will boost productivity and create jobs.
The report also underscores the importance of remittances but points to the challenges of migration costs and unequal opportunities. David Sislen, World Bank Country Director for Maldives, Nepal, and Sri Lanka, stressed the need for continued reform to maintain growth momentum and better manage international migration.
The Nepal Development Update is produced biannually and provides a comprehensive analysis of the country’s economic trajectory.
Download the Report: Nepal’s Economy Grow By 5.1%
