Nepal’s Economy Sees 5.1% GDP Growth in Second Quarter of Fiscal Year

Nepal’s economy recorded a 5.1 percent growth rate in the second quarter of the current fiscal year 2081/82 BS (2024/25 AD), according to the National Statistical Office. The preliminary gross domestic product (GDP) estimates, released on Wednesday, indicate a modest recovery in key sectors like transportation, construction, and agriculture.

However, the adjusted growth rate, factoring in weather-related impacts, stands at a more conservative 2.2 percent. The statistical office noted that while there has been progress in certain sectors, the overall growth remains tempered by challenges in education, housing, food, and other service industries.

Transportation and storage activities experienced the highest growth, surging by 14.2 percent, followed by the mining and quarrying sector at 9.5 percent. The construction sector saw a notable 9.1 percent growth, fueled by increased imports of construction materials and a rise in domestic production.

Meanwhile, the financial and insurance sector grew by 6.6 percent, supported by a 7.4 percent increase in manufacturing industries and rising deposits and loans. The trade sector recorded a growth rate of 6.1 percent, while the information and technology sector expanded by 4.9 percent.

Agriculture, a key contributor to Nepal’s economy, grew by 3.2 percent, driven by increased production of rice, vegetables, ginger, winter fruits, and livestock products.

Despite these gains, the electricity and gas sector faced a 4.8 percent decline, while the housing and food sectors contracted by 2.7 percent. The statistical office noted that two out of 18 industrial sectors registered negative growth during the quarter.

Looking ahead, the report suggests that the growth rate will remain modest as sectors like education, housing, and food continue to recover slowly.