The forecast suggests that Nepal’s economic growth will remain below 4% over the next two years, with only a modest recovery expected in 2027.
The IMF also expects consumer inflation in Nepal to ease to 3.1% in 2026 from an estimated 4.1% in 2025 before rising sharply to 5.8% in 2027.
The Fund warned that rising global oil prices and potential disruptions to energy supplies could pose significant challenges for Nepal, which relies heavily on imported fuel and other goods. The ongoing conflict in the Middle East has added to uncertainty in international energy markets, increasing the risks for import-dependent economies.
Globally, the IMF projects economic growth to slow to 3.1% in 2026 from 3.5% in 2025 before recovering to 3.4% in 2027.
Despite geopolitical tensions and trade-related uncertainties, investment in artificial intelligence (AI), technological advances and economic adjustments have helped sustain global economic activity. However, the IMF noted that the gains from AI-related investment remain unevenly distributed across economies.
