ADB Projects Nepal’s Economic Growth to Slow Due to Bhotekoshi Floods

Kathmandu — The Asian Development Bank (ADB) has projected that Nepal’s economic growth will slow following the devastating floods that struck the Bhotekoshi and Trishuli rivers on August 26, 2026.

The Asian Development Outlook released by the ADB on Wednesday said the floods could weigh on economic growth and push inflation higher. Nepal’s economic growth is projected at 4.1 percent in 2027, down from the earlier estimate of 4.5 percent.

Inflation is also forecast to reach 5.3 percent in 2027. In July, the ADB had projected economic growth at 5 percent. The latest report therefore revises the growth outlook downward by 0.4 percentage points and raises the inflation forecast by 0.3 percentage points.