Analysts warn economic activity may shrink if political unrest continues.
Nepal’s economy faces mounting uncertainty as widespread youth-led protests disrupt daily business operations, tourism, and employment. Hotels, restaurants, and retail outlets in major cities have suffered losses as many remained closed during demonstrations.
Economists caution that the country’s growth forecast could remain under 1 percent for the coming fiscal year if unrest persists. The private sector has expressed concern over declining consumer confidence and delayed investment decisions.
Government officials have urged dialogue to restore calm, noting that stability is crucial to safeguard jobs and revive business activity. Experts stress that long-term recovery will depend on improved governance and stronger institutional reforms.
