Kathmandu. According to the World Bank, Nepal’s economic growth rate is slowing down.

According to the World Bank’s forecast, Nepal’s economic growth is estimated to be 2.1 percent in the fiscal year 2025/26. It is projected to grow by 4.7 percent in 2026-2027. Earlier, the World Bank had projected that Nepal’s economic growth would be 5.2 percent in 2025/26 and 5.5 percent in 2026/27.

In fiscal year 2025, the growth rate was 4.6 percent. That’s up from 3.7 percent in fiscal year 2024. The growth was aided by the growth of hydroelectric power, improvement in industrial production, and revival of the agricultural sector.

However, the World Bank has said that Nepal’s economic growth will also shrink due to the GenG agitation on September 7 and 24. The anti-corruption protests and the damage caused by the government’s social media ban will hurt economic growth, it said.

The damage caused by the Genji movement to public and private infrastructure is still being assessed. These demonstrations have expressed public dissatisfaction with the system of governance and deep frustration with the lack of economic opportunities among the youth. Due to the lack of such opportunities, it will be difficult for the private sector to work, there will be no business environment.

As a result, Nepal’s economic growth rate will be slower than other South Asian countries. According to the World Bank, Nepal’s economic growth rate was 4.3 percent from 2012 to 2024. Employment generation was also limited during this period. The youth unemployment rate has reached 22.7 percent in the fiscal year 2023. This is one of the highest rates in South Asian countries.