Kathmandu: Nepal’s economy is set to grow by 3.4 percent in the first quarter of the fiscal year 2024/2025), according to projections released by the National Statistics Office.
The projection unveiled on Tuesday, indicates a modest yet positive change as Nepal’s economy at basic prices is expected to increase by 3.4 percent compared to the same period in the previous fiscal year. This growth is primarily driven by improvements in agriculture, energy, tourism, and public administration, the office said.
Agricultural production has seen a notable rise, while electricity generation and distribution have also significantly contributed to the economy. Also, the rebound in tourism, accompanied by increased value addition in the hotel and hospitality sector, has played a pivotal role. Growth in transportation, healthcare services, and public administration has further increased economic activity during the quarter.
Despite these positive indicators, the economy faced headwinds. The impact of floods and landslides during the monsoon season, along with sluggish performance in the construction sector, limited overall growth.
The report also compares the GDP performance quarter-on-quarter, noting only a marginal 0.2 percent increase from the fourth quarter of the previous fiscal year (April–June 2024). This subdued growth is attributed to negative performance in six out of 18 industrial sectors and moderate growth in others.
Nevertheless, the electricity and information and communication sectors are anticipated to experience remarkable progress during the quarter, offering a glimmer of optimism.
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