Nepal's Economy to Slow in FY2026, Potentially Rebound in FY2027
Nepal, April 10 -- Nepal's economy is forecast to grow by 2.7% in fiscal year (FY) 2026, down from 4.6% in FY2025, according to the Asian Development Outlook (ADO) April 2026, Asian Development Bank's (ADB) flagship economic publication. Gross domestic product (GDP) growth is expected to climb to 5.0% in FY2027 as the effects of recent shocks fade, leading to stronger domestic demand, hydropower exports, and tourism. The forecasts are informed by assumptions finalized on 10 March under exceptionally high uncertainty, envisaging an early stabilization scenario for the conflict in the Middle East. Evidence since then points to a higher likelihood of more persistent disruptions.Inflation is projected at 3.7% in FY2026 and to further rise to 4....
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