Kathmandu – The Asian Development Bank (ADB) has indicated that Nepal’s economy is on a recovery path. In its recently released Asian Development Outlook report, ADB has noted the improving economic outlook for Nepal.

ADB estimates that Nepal’s Gross Domestic Product (GDP) will grow by 4.9% during the current fiscal year 2081–82 (up to September 2025). Prior to this, ADB had projected that by April 2025, Nepal’s GDP would increase by 4.8%. Currently, ADB estimates that Nepal’s GDP has grown by 3.9%.

In the current fiscal year, the government has set a target of 6% growth for Nepal’s GDP. In this context, ADB’s estimate of a 4.9% growth in GDP is significant. The report also mentions that public investment in electricity projects increased by 17.7% in 2024, while private investment rose by 16.6%.

In South Asia, an economic growth rate of 6.3% is expected in 2024, with a further increase to 6.5% in 2025. The region achieved a growth rate of 6.8% in 2023, with India projected to have the highest growth rate at 7%. Bangladesh, Bhutan, and the Maldives are also expected to achieve growth rates above 5% this year.

Regarding inflation, it is anticipated that Nepal will keep inflation within the 5.4% range in 2024, down from 7.7% in 2023. In 2025, a slight increase to 5.5% inflation is projected. With the decrease in inflation in India, which is the main source of imports for Nepal, a general decline in inflation in Nepal is also expected.