Kathmandu. The Asian Development Bank ADB has released a forecast that Nepal's economic growth rate will be limited to 2.7 percent in 2026. According to the 'Asian Development Outlook April 2026' published by ADB, this rate was 4.6 percent in the previous financial year, but this year it was low.

According to ADB's country director for Nepal, Arno Koswa, economic growth is expected to slow down due to political uncertainty, the Genji movement of last August and the ongoing conflict in the Middle East region. Mentioning that if political stability is maintained, it will help the reform program to move forward and increase economic confidence, Koswa said that due to the Middle East conflict, there are risks due to the impact on oil prices, tourism and remittances.

In the report, it is estimated that the economic growth rate will reach five percent in the next financial year. It is expected that the economy will be supported by the improvement in domestic demand, increase in hydropower exports and the revival of the tourism sector as the obstacles seen at present gradually decrease.