Nepal Economy to Grow 3.85% in 2025-26

Kathmandu, May 27 (PTI) Nepal's economy is expected to grow at 3.85 per cent in 2025-26, despite uncertainty in the global economy and the ongoing West Asia conflict according to the Economic Survey released on Wednesday.

Finance Minister Swarnim Wagle released the first Economic Survey by the Balendra Shah government in Kathmandu.

With inflation under control, strengthening of the external sector and a significant increase in remittances, the country's economy is expected to grow more, according to the Economic Survey.

Despite uncertainty in the global economy and the ongoing West Asia conflict, the overall economic indicators have shown improvements and the social sector has made satisfactory progress, said Wagle.

The country's economy is projected to expand by 3.85 per cent in 2082/83 Bikram Samvat (2025-26), according to the economic survey.


However, the economy faces challenges from weak capital expenditure, a rising trade deficit, growing public debt, and slow private sector loan disbursements.

The survey estimates the size of the economy to reach Nepalese rupees (NPR) 6.6 trillion (USD 43 billion approximately), while per capita gross national income would reach USD 1,535.   

 
The forex reserve stood at NPR 3.414 billion (USD 22.3 million), sufficient to cover the imports of goods and services for roughly 18 months, it said.

Earlier in May, Nepal's President Ramchandra Paudel presented a policy document on the government's priorities for the fiscal year 2026-27 before a joint meeting of the federal parliament.

Promoting artificial intelligence exports, digital services, cloud services, green computing and cybersecurity were marked as priorities.