Nepal's economic growth is projected to accelerate to 5.1 percent in FY25 from 3.9 percent in FY24, driven by anticipated high tourist arrivals, along with increased hydropower and paddy production, according to the World Bank’s latest economic update, Nepal Development Update: International Migration and Well-being in Nepal. The private sector is expected to contribute to the country’s growth, as it is anticipated to benefit from the central bank’s loosening of monetary policy and easing of regulatory requirements. Nepal’s economy is projected to grow by 5.5 percent in FY26.