World Bank projects Nepal's economic growth at 5.1% for 2025

Kathmandu, October 2 — The World Bank has projected that Nepal's economic growth rate for the current fiscal year (2081/82, or 2025) will be 5.1 percent, while the government has set a target of 6 percent.

The World Bank attributes this anticipated growth to an increase in tourist arrivals, growth in hydropower, and rice production.

For the previous fiscal year (2080/81, or 2024), the World Bank had projected Nepal's economic growth rate to be 3.9 percent.

The economy of Nepal is expected to grow by 5.5 percent in 2026. The World Bank has noted that the contribution of the private sector to Nepal's growth will be significant due to the central bank's flexible monetary policy and regulatory facilitation.

However, the World Bank has also highlighted risks, including the potential for high-risk private sector loan growth to be restricted due to non-performing loans, uncertainties in policy that could impact investments, delays in capital spending affecting infrastructure development, and regional instability and trade disruptions that may reduce tourism and domestic demand.