Nepal: Economy

Growth slowed in FY2016 after devastating earthquakes late in the previous fiscal year, a weak monsoon, and trade disruptions. The outlook is for robust recovery in the next years on revived agriculture and accelerated spending on reconstruction. Slow growth in worker remittances, the major source of foreign exchange, is pushing the current account into deficit. Reform to boost investment is critical to lifting the growth trajectory. Read more from Asian Development Outlook 2017


Economic forecasts for South Asian countries

Country 2017f 2018f
Afghanistan 2.5 3.0
Bangladesh 6.9 6.9
Bhutan 8.2 9.9
India 7.4 7.6
Maldives 3.8 4.1
Nepal 5.6 5.4
Pakistan 5.2 5.5
Sri Lanka 5.0 5.0
Average 7.0 7.2
Country 2017f 2018f
Afghanistan 5.5 5.8
Bangladesh 6.1 6.3
Bhutan 4.9 5.4
India 4.0 4.6
Maldives 2.1 2.3
Nepal 6.0 6.5
Pakistan 4.0 4.8
Sri Lanka 6.0 6.0
Average 4.2 4.7
Country 2017f 2018f
Afghanistan 1.4 –0.2
Bangladesh –1.0 –0.7
Bhutan –27.4 –22.8
India –1.3 –1.5
Maldives –18.9 –19.1
Nepal –1.6 –3.2
Pakistan –2.1 –2.5
Sri Lanka –2.2 –2.2
Average –1.4 –1.6

f = forecast number.

Source: Asian Development Outlook 2017