The government has lowered Nepal’s economic growth forecast for FY 2025/26 to 3.5 percent, down from the earlier six percent target. The Ministry of Finance cited reduced rice production, slower construction activity, and declining real estate transactions as key reasons in its mid-term review. Previously, growth was estimated at 4.6 percent in FY 2024/25, while the World Bank projects 2.1 percent growth this year.
Foreign grant inflows to Nepal have declined sharply at a time when the government is becoming increasingly reliant on external assistance and concessional loans to finance its budget...
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