Nepal’s economy to rebound – WB

KATHMANDU— Nepal’s economy is expected to rebound to 3.9% in Financial Year 2024 owing to a lagged impact of the lifting of import restrictions, strong rebound in tourism, and the gradual loosening of monetary policy, according to the World Bank’s (WB) twice-a-year country update.

The report, ‘Nepal Development Update, Restoring Export Competitiveness,’ projects Nepal’s economy to grow by 5% in FY25. However, there are multiple risks to the outlook including an erratic monsoon, which could dampen agricultural growth; a renewed spike in commodity prices or continued food export bans by India which would raise prices; and higher inflation which could keep policy rates elevated, increase domestic debt servicing costs, and drag on growth.

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