Nepal, Oct. 13 -- Nepal's economy is projected to grow by 3.6 percent in fiscal year 2026/27, remaining below the 4 percent mark for the second consecutive year, as rising international oil prices and geopolitical tensions weigh on economic prospects, according to the International Monetary Fund (IMF).

In its latest World Economic Outlook report released on Tuesday, the IMF has projected Nepal's economic growth to improve marginally to 3.7 percent in FY 2027/28. The projection indicates that the country's economic expansion will remain subdued over the next two years.

The IMF also expects inflationary pressure to intensify after easing in 2026. Consumer price inflation in Nepal is projected to decline from 4.1 percent in 2025 to 3.1 pe...