On September 19, Fitch Ratings highlighted that recent episodes of civil disturbance in Nepal have increased vulnerabilities in the nation’s economic and fiscal trajectory, potentially affecting its credit standing. According to the agency, although stability has been restored, the earlier violence disrupted regular economic functions, weakening both consumer and corporate sentiment in the short term. This deterioration could hinder near-term growth and place additional strain on public finances. The rating agency emphasized that ongoing political instability may delay policy implementation and undermine investor confidence, further complicating macroeconomic management.
— news from Reuters
— News Original —
Fitch says Nepal’s political unrest risks economic outlook, credit metrics
“Calm has returned, but we believe the violence has dampened near-term growth prospects by curbing normal economic activity, and hurting consumer and business confidence,” Fitch said.
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Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Christian Schmollinger