According to World Bank projections, Nepal's economic growth rate will accelerate.

According to World Bank forecasts, Nepal's economic growth rate is expected to accelerate in the current fiscal year (2025).

The World Bank projects that this year's economic growth rate, which was 3.9 percent in 2024, will increase to 5.1 percent. High tourist arrivals, hydropower and increase in rice production would help in the expansion of the economy, according to the World Bank's official 'Nepal Development Update' report on Wednesday.

In the upcoming year of 2026, Nepal's economy is predicted to increase by 5.5%. The World Bank predicts that Nepal's private sector will make a major growth contribution because of the Central Bank's flexible monetary policy and the ease with which regulations can be implemented.

The economic hazards were also noted in the report. High financial system risks, non-performing loans that impede the expansion of private sector credit, possible policy discontinuities that could impact investment, delays in the implementation of capital expenditures that have an impact on the development of infrastructure, trade disruptions and regional instability that could lower domestic demand and tourism, etc. Risks exist.

Nepal's economy is gradually improving, according to Prof. Dr. Shivraj Adhikari, Vice President of the National Planning Commission.

He said that strengthening the budgetary process and completing projects that are nearing completion will be Nepal's top priority in order to increase capital spending and bolster the stability of the country's economy as a whole. According to him, this will boost domestic output and add to the employment market.

According to him, the turbulence in Malaysia and the Gulf nations that take in migrant labor can potentially impede the expansion. It is believed to have an effect on remittances from overseas, which are important for household consumption, reducing poverty, and developing human capital. It has been noted that immigration to Nepal is exceedingly costly, fraught with unfair opportunities, and difficult for many people to complete.

The research includes up-to-date information on the advantages and disadvantages of migration to Nepal. It has also emphasized the major policy changes needed to create an inclusive migration management system in order to ensure sustainability and growth of returns.

He made reference to the necessity for ongoing infrastructure development, sound governance, the development of human capital, and the private sector. "Nepal has benefited a lot through remittances from foreign workers and improving the management of these flows, better supporting Nepalis seeking work abroad and building a vibrant domestic economy that creates an environment for skilled workers to be productive in Nepal is important for Nepal's future," he stated.

He said that a robust and all-encompassing immigration management system would provide an open admissions procedure. He said that immigrants' safety and freedom of mobility in the job market would be guaranteed, and that workers would be better prepared to travel overseas.