Rebuilding Nepal's economy could cost as much as a tenth the amount of its GDP.

Swarnim wagle, the Finance Minister, said on Saturday that Nepal could need between $4 and $5 billion in order to rebuild following this week's devastating flooding. This is roughly equal to a tenth or more of its economy.

The initial estimate is $4-$5 Billion. Wagle said, "This is just an estimate." "We'll need much less than we did for the earthquake of?2015." "Losses and damages are being assessed."

The collapse of a glacier on Wednesday released a torrent of rocks, ice, debris and mud through Himalayan river systems. More than 600 people were killed in Nepal and China’s Tibet. Over 2,000 are still missing.

The flood swept away roads, bridges, and major hydropower stations in the border region.

Wagle didn't elaborate on why the bill for reconstruction was expected to cost less than the $9 billion spent in 2015 after Nepal's worst disaster ever recorded, a magnitude-7.8 earthquake. The quake killed nearly 9,000, destroyed over half a million houses and caused losses that are estimated to be around a third of Nepal's economic.

The floods of Wednesday will still be a major hit to an economy that is largely dependent on remittances and tourism, as well as hydropower. They could also damage power projects, which account for over 12% the nation's generating capacity.

(source: Reuters)