The World Bank has revised its economic growth forecast for Nepal downward.
On October 6, the World Bank released a report stating that due to disruptions in the industrial and service sectors caused by the floods that occurred on August 26, Nepal's economic growth rate is expected to drop to 3.7% next year.
The floods have resulted in at least 1,445 deaths and approximately 5,285 people are still missing. More than a month after the disaster, on October 5, the Nepalese government decided to halt search and rescue operations during a meeting of the National Disaster Risk Reduction and Management Committee.
According to the World Bank report, the primary reasons for the slowdown in economic growth include damage to energy infrastructure, such as hydropower, and the paralysis of border trade routes and key highways. The damage to power generation and transmission facilities amounts to about 10.6% of the total installed capacity, and the Rasuwagadhi road, a major trade gateway with China, has been washed away.
However, the World Bank also projected that as reconstruction and recovery efforts gain momentum, the growth rate could reach 5.2% by 2028.
David Sislen, the World Bank's country director for Maldives, Nepal, and Sri Lanka, stated, "Now is an opportunity for Nepal to reassess its infrastructure, encompassing transportation, energy, and basic public services such as water supply, health, and education." He added, "The World Bank will actively support the authorities in implementing systematic investments and sound policies to help Nepal move toward a more resilient and sustainable development path."
* This article has been translated by AI.
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