Economic
Nepal Revised Growth Forecast to 3.5 Percent for FY25–26
Nepal's economy is projected to grow by 3.5 percent in fiscal year 2025–26, falling short of the initial 6 percent target due to sectoral slowdowns.
On February 11, 2026, Nepal's Ministry of Finance announced a downward revision of the country's economic growth projection to 3.5 percent for fiscal year 2025–26, well below the original 6 percent target. The revision comes amid a slowdown in key sectors such as agriculture, construction, and real estate, compounded by reduced paddy production and a dip in investment activity. The government also cited uncertainty in the external environment and lingering effects from previous unrest as additional pressures on growth. The World Bank has similarly projected a slowdown, estimating growth of about 2.1 percent for the same fiscal year, driven by weaker services and tourism performance. The downgrade underscores fiscal consolidation challenges and reinforces calls for structural reforms and targeted investment.
- Status
- active
- Location
- Kathmandu, Nepal
- Date added
- 2026-03-25 23:07 UTC
- Last updated
- 2026-03-25 23:07 UTC
- Source
- Xinhua News Agency
- Connected threats
- Not provided