Skip to main content

Nepal Development Update (October 2022)

Countries
Nepal
Sources
World Bank
Publication date
Origin
View original

Executive Summary

Part 1: Recent Economic Developments and Outlook

Recent Economic Developments

Nepal’s economy has emerged forcefully from the pandemic.

A strong recovery in domestic demand has driven growth. Movement restrictions in combination with an almost complete shut-down of tourism during the COVID19 pandemic resulted in Nepal’s first economic contraction in 30 years in FY20 (-2.4 percent). A decisive vaccine roll-out and the reopening of borders have supported the economy’s recovery, with growth estimated to have accelerated to 5.8 percent in FY22. Strong growth in domestic demand for consumption and investment was the main driver of the recovery.