Fitch says Nepal’s political unrest risks economic outlook, credit metrics

Kathmandu, Nepal – On September 12, 2025, Nepali Army soldiers were seen deploying concertina-barricade wires outside the presidential building, Shital Niwas, as the nation grappled with escalating social unrest. This turmoil has raised significant concerns about Nepal’s economic and fiscal stability, according to a recent report by Fitch Ratings. The rating agency highlighted that while calm has been restored, the recent wave of violence has severely impacted short-term economic growth by disrupting normal business activities and eroding consumer and business confidence. Fitch warned that these developments could exert pressure on Nepal’s credit metrics, potentially affecting its financial standing in the global market. The unrest underscores the fragile balance between social stability and economic progress in the Himalayan nation, with analysts closely monitoring the situation for further developments.