Nepal’s economy grew by 5.9% (at basic prices) in 2018, down from 7.4% a year earlier largely on the back of subdued agriculture output, as a result of floods of August 2017.
 
This edition of Macroeconomic Update’s Issue Focus sheds light on some major issues and challenges to disaster risk reduction and highlights some of the key lessons on disaster management based on ADB's experiences in Nepal. The country is highly susceptible to natural hazards given its topography and diverse climatic conditions. The mountainous belt is at risk of landslide and soil erosion, the Himalayan belt is at risk of avalanche and glacial lake outburst flood, and the Terai belt is vulnerable to flood, drought and fire. The situation is further aggravated by unplanned human settlements. This issue focus discusses the importance of multi-stakeholder approach, donor coordination and bundling of soft assistance with hard investments for effective disaster risk management.