Nepal, Oct. 6 -- Nepal's economic growth is projected to slow to 3.7 percent in Fiscal Year 2026/27 following disruptions to industry and services caused by the August 26 flood, according to the World Bank (WB)'s latest development update.

Reconstruction and rehabilitation activities are expected to begin supporting economic activity, supporting a recovery in growth to 5.2 percent in FY 2027/28.

Releasing its signature publication, 'Nepal Development Update, Building Back Differently for the Future' states that industry is expected to be the primary drag on growth, reflecting extensive damage to hydropower, solar energy, electricity transmission, and transport infrastructure, which will constrain electricity generation, production, and...