Nepal's GDP Growth Estimate for FY 2025/26 Amid Political Uncertainty
- Event Title
- Nepal's GDP Growth Estimate for FY 2025/26 Amid Political Uncertainty
- Details
Overview
The World Bank's April 2026 Nepal Development Update estimated Nepal's GDP growth for FY 2025/26 at
$4\%\text{–}5\%$, which falls short of the initial budget target. This slow growth is attributed to economic disruptions following political unrest in late 2025.Key Economic Indicators
- Remittance Growth: Remittances grew by
$37.7\%$during the first eight months of the fiscal year, acting as a crucial driver for household consumption and foreign exchange reserves. - Remittance-to-GDP Ratio: Remittances represent nearly
$40\%$of Nepal's total GDP, which is estimated at approximately Rs 5.5 trillion. - Structural Challenges: The update highlighted persistent bottlenecks, especially the widening gap between infrastructure planning and implementation.
- Remittance Growth: Remittances grew by
- Date
- 2026-04-01
- Category
- Economy
- CMAT Significance
- Medium CMAT priority — GDP estimate, remittance-to-GDP ratio (~`$40\%$`), and World Bank assessment are economy GK items.