KATHMANDU, Nov 13 (Xinhua) -- The World Bank on Thursday projected that Nepal's economic growth will slow significantly in fiscal year 2025-26, reflecting the impact of public unrest in September and ensuing political instability.
In a flagship publication on Nepal's development, the global lender said Nepal's economic growth is projected to decline to 2.1 percent in fiscal year 2025-26, which began in mid-July, down from 4.6 percent in fiscal year 2024-25.
The South Asian country witnessed widespread street protests in early September that led to political change.
The World Bank said the projected slowdown is expected to be largely driven by the services sector. Tourism activity is projected to decline sharply, reflecting a significant drop in international tourist arrivals, while the spillover effects of asset losses are expected to affect the insurance industry.
Reconstruction efforts in the current and next fiscal years are expected to help the economy rebound to 4.7 percent in fiscal year 2026-27, the World Bank added. ■