The World Bank has projected that Nepal’s economic growth will be limited to 3.7 percent in fiscal year 2083/84, following the flood in Rasuwa’s Bhote Koshi on Bhadra 10. The projection is set out in the bank’s latest development update report.
The report says disruption to industry and the service sector from the flood is expected to weigh on economic activity. Damage to infrastructure could affect electricity generation, manufacturing and the movement of goods.
Infrastructure damage expected to slow activity
The flood damaged hydropower and solar energy infrastructure, as well as electricity transmission and transport infrastructure, according to the report.
The World Bank expects these impacts to affect electricity generation and manufacturing activities, while transport disruption could hinder the movement of goods.
Reconstruction may support the economy
Reconstruction and rehabilitation work is expected to support economic activity as those efforts begin, the report says.
