ADB Projects Nepal's Economic Growth at 2.7 Percent for 2026

Kathmandu. The Asian Development Bank (ADB) has projected that Nepal's economic growth rate will be limited to 2.7 percent in 2026. The ADB released this forecast for the upcoming year through its Asian Development Outlook.

Two days ago, the World Bank had projected an economic growth rate of 2.3 percent for Nepal. The ADB's projection is slightly higher than that. Arnaud Cauchois, the ADB's Country Director for Nepal, stated that amidst challenges such as last year's civil unrest, political uncertainty, and the ongoing conflict in the Middle East, the economic growth rate in the fiscal year 2026 will remain significantly sluggish.

According to him, the return of political stability will drive improvements and boost confidence in the economy. However, the ongoing conflict, particularly in the Middle East, continues to pose adverse risks to petroleum prices, as well as tourism and remittance inflows. Nevertheless, as existing shocks weaken, the ADB projects that domestic demand, hydroelectric exports, and tourism will strengthen, leading to a robust GDP growth rate of 5 percent in the fiscal year 2027.