Nepal’s economy is wobbling, and the World Bank says the country could even slip into negative growth if the current instability continues.

After months of political protests and nationwide disruptions, what began as social unrest is now threatening to turn into an economic crisis.

The Warning Bell

In its latest Nepal Development Update, the World Bank says the unrest has halted business activity, scared off investors, and disrupted supply chains.

The immediate hit is visible: markets are sluggish, construction projects have stalled, and industrial output is dipping.
But the real worry is what happens next: Nepal’s already-fragile growth momentum might reverse entirely.

Economists now predict growth could drop below zero, a rare and painful situation for a developing economy that was aiming for a 7 % target just last year.

How Did We Get Here?

• Protests and shutdowns have disrupted trade and transport routes, slowing exports and local business.
• Tourism, one of Nepal’s top income earners, has seen mass cancellations as visitors rethink travel plans.
• Rising import costs and low revenue collection have worsened the government’s fiscal stress.
• Add to that last year’s floods and infrastructure losses, and Nepal’s growth story is taking multiple hits at once.

The World Bank notes that private investment has collapsed, while public spending hasn’t filled the gap.

The Ripple for Young People

For younger population, this hits closer to home than it sounds:

• Fewer jobs in construction, retail, and hospitality mean tougher entry into the workforce.
• Startups and SMEs may delay expansion or cut staff to survive.
• Inflation and currency pressure could make education loans, rent, and basic goods even harder to afford.

Simply put: Instability doesn’t just hurt GDP charts, it touches everyday life.

A Way Forward

The World Bank’s prescription isn’t glamorous but it’s clear:

• Stabilize the political climate so businesses regain confidence.
• Accelerate reforms that make it easier to invest, hire, and produce.
• Invest in youth-driven industries: tech, green energy, creative sectors to absorb new talent.
• Strengthen social protection for vulnerable households before another crisis widens the gap.

E-Buzz Takeaway

Nepal’s economy doesn’t fail from numbers alone, it falters when hope and trust dry up.
For young Nepalis building dreams amid protests, migration trends, and inflation, this report is a reminder: the fight for stability is also a fight for opportunity.

The next few months will show whether Nepal can turn unrest into reset or let another cycle of crisis rewrite its future.

Source: The Kathmandu Post