KATHMANDU: Nepal’s economy recorded a 5.1% growth rate in the second quarter of the fiscal year 2081/82 BS (2024/25 AD), according to estimates by the National Statistical Office.
Announcing the preliminary GDP forecast for the second quarter on Wednesday, the office noted a slight economic expansion, driven primarily by improvements in transportation and other sectors.
However, the growth rate does not account for the impact of weather-related factors. After adjusting for weather effects, the GDP growth rate stands at 2.2%.
According to the office, positive growth in transportation, construction, agriculture, electricity generation and distribution, and financial intermediation contributed to the overall economic expansion.
However, the report highlights slower progress in education, housing, food, and other service sectors, which kept the overall growth modest.
Weather-adjusted data indicates negative growth in two out of 18 industrial sectors. The electricity and gas sector saw a 4.8% decline, while the housing and food sectors contracted by 2.7%.
Among industries, transportation and storage recorded the highest growth at 14.2%, followed by mining and quarrying, which grew by 9.5%. The construction sector expanded by 9.1%, supported by an increase in the import of construction materials and domestic production.
The financial and insurance sector posted a 6.6% growth rate, driven by 7.4% growth in manufacturing industries and an increase in deposits and loans.
The trade sector grew by 6.1%, while the information and technology sector expanded by 4.9%.
The agriculture sector, which remains a key driver of Nepal’s economy, grew by 3.2%.
The report attributes this growth to increased production of rice, vegetables, ginger, winter fruits, and livestock products, which positively impacted the sector’s total value addition.
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