Forecast: Nepal's economic outlook for 2026 presents a mix of forecasts from major international institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB). These forecasts reflect a blend of optimism regarding structural resilience and concerns over ongoing political and social instability. The ADB projected a 5.1% GDP growth for 2026 in April 2025, driven by the revival of tourism and improved agricultural productivity. However, the World Bank later forecasted a 2.1% GDP growth for 2026 in November 2025, indicating a significant slowdown due to political unrest and weakened investor confidence. The IMF projected moderate GDP growth continuing the recovery around 4.3 to 4.5%. The economic recovery is stabilizing but faces challenges due to a complex domestic environment and global uncertainty. Underlying Reasons: The divergent predictions stem from various factors. The unexpected youth movement, known as the "Gen Z uprising,...

Nepal faces a multitude of challenges in transitioning into a developing nation. These obstacles include political, economic, social, infrastructural, and environmental issues that hinder its graduation from the category of Least Developed Countries (LDCs). Let's discuss a few key vulnerabilities that Nepal needs to address in order to advance towards becoming a middle-income economy. Economic Vulnerabilities and Structural Weaknesses of Nepal 1. Agricultural Dependency: The country's economy is largely dependent on agriculture, which is susceptible to natural disasters such as floods, droughts, and earthquakes. The reliance on subsistence agriculture exposes a large portion of the population to climate risks, low productivity, and limited market access. 2. Remittance Reliance: Nepal heavily relies on remittances from its citizens working abroad, which makes the economy vulnerable to fluctuations in global economic conditions and policies. Remittances from Nepali workers abroad...

A.    The Least Developed Countries Low real per capita income, pervasive poverty, low literacy rates, short life expectancies, resource underutilization, and susceptibility to environmental and economic shocks are characteristics of least developed countries, often known as undeveloped countries. A significant portion of the populace in an underdeveloped economy cannot afford adequate standards of living. The Underdeveloped nations are typically characterized by: Low level of living, economic growth rate, and per capita income High economic inequality or an unequal distribution of wealth and income Significant reliance on the agricultural sector and an antiquated industrial structure The rapid population growth rate, high rates of unemployment, and underemployment Large imports and little exports Lack of funding, technology, and technical expertise A poverty cycle characterized by inadequate social and physical infrast...