Kathmandu, March 27: Nepal’s economic growth rate has been estimated at 5.1% in the second quarter of the current fiscal year 2081/82 BS (2024/25 AD), according to the National Statistical Office (NSO).
Releasing the preliminary Gross Domestic Product (GDP) forecast on Wednesday, the office reported slight economic growth, driven by improvements in transportation, construction, agriculture, electricity generation, and financial intermediation. However, the impact of weather conditions has not been fully accounted for in this estimate.
After adjusting for weather effects, the actual GDP growth rate stands at 2.2% for the second quarter.
Sector-wise performance
- Highest Growth: Transportation and storage led with a 14.2% growth rate, followed by mining and quarrying at 9.5%.
- Construction sector grew by 9.1%, supported by increased imports of construction materials and higher domestic production.
- Manufacturing industries recorded a 7.4% growth rate, contributing to a 6.6% growth in the financial and insurance sector, aided by rising deposits and loans.
- The trade sector expanded by 6.1%, while the information and technology sector grew by 4.9%.
- The agriculture sector, Nepal’s largest economic contributor, grew by 3.2%, driven by increased production of rice, vegetables, ginger, winter fruits, and livestock products.
Negative growth areas
- The electricity and gas sector declined by 4.8%.
- The housing and food sector contracted by 2.7%.
- Two out of 18 industrial sectors reported negative growth.
The report suggests that overall economic growth remains modest, with slow progress in education, housing, food, and other service sectors limiting further expansion. #nepal #GDP
