World Bank Forecasts 4.5% Economic Growth for Nepal in FY 2024/25

Kathmandu – Nepal’s economy is expected to grow by 4.5 percent in the fiscal year 2024/25, according to the latest projection by the World Bank. This marks an improvement from the estimated 3.9 percent growth in the previous fiscal year.

The World Bank report attributes the upward revision to stronger performance in internal trade, hydropower production, and rice output. Looking ahead, Nepal’s growth is projected to average 5.4 percent in the subsequent fiscal years of 2025/26 and 2026/27.

David Sislen, the World Bank’s Country Director for Maldives, Nepal, and Sri Lanka, stressed the importance of enhancing private sector-led growth to generate employment opportunities and strengthen the economy.

Despite the optimistic outlook, the report warns of several risks that could derail growth. These include geopolitical and trade-related uncertainties, a decline in investment returns, weakening loan quality, frequent bureaucratic reshuffles causing policy instability, and delays in executing capital expenditures.

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