In early September 2025, Nepal witnessed large-scale “Gen Z” protests led by youth outraged by government corruption, joblessness, and inequality. Triggered by a sudden social media ban, the protests quickly swelled across Kathmandu and other cities. The unrest turned violent, resulting in dozens of deaths and extensive property damage including burned hotels, stores and vehicles in major tourist areas. Initial estimates pegged economic losses at up to $22.5 billion (nearly half of Nepal’s GDP), as tourism bookings were devastated and investor confidence evaporated, with growth forecasts slashed below 1% for the year. This upheaval, unprecedented in recent years, underscored deep public frustration with poor governance and economic stagnation. It also forced a change in leadership and created urgent pressure on policymakers to stabilize the economy and address young citizens’ grievances.
Nepal’s Economy After the Gen Z Protests: 1st Quarter Review (FY 2082/83)
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