Nepal’s economy has shown signs of gradual recovery in the first half of the current fiscal year, supported mainly by increased remittance inflows, stable inflation, and recovery in service-sector activities. Government data indicate modest growth in construction, transport, and hospitality sectors. However, industrial production and private investment remain weak due to high operational costs, policy uncertainty, and limited access to affordable credit. Economists say structural reforms, improved capital spending, and investor-friendly policies are necessary to sustain long-term economic growth.
