Economic growth rate for current FY estimated at 4.61pc, GDP to reach Rs 6,107bn

KATHMANDU: Nepal’s economic growth rate for fiscal year 2024/25 is estimated at 4.61%, with the country's economy projected to reach Rs 6,107 billion, according to the National Statistics Office (NSO).

The NSO released its annual national accounts statistics on Wednesday, reporting that Nepal’s Gross Domestic Product (GDP) is expected to reach Rs 6,107 billion this fiscal year, measured at consumer prices.

The office has also published actual and revised GDP figures from previous fiscal years. Nepal’s economy stood at Rs 5,367 billion in the preceding fiscal year, while in the fiscal year 2023/24, it was recorded at Rs 5,709 billion.

The economic growth rate for current fiscal year 2024/25 is estimated at 3.99% at basic prices and 4.61% at consumer prices. Nepal saw an economic growth rate of 3.99% in the previous fiscal year.

The NSO projects that agricultural sector will contribute 3.28% to economic growth this fiscal year, while the non-agricultural sector is expected to account for 4.28%. The agricultural sector recorded a growth rate of 3.35% in 2023/24, with the non-agricultural sector growing at 3.36%. Growth estimates for the primary sector stand at 3.25%, the secondary sector at 4.65%, and the service sector at 4.21% this year.

The industry and construction sectors, which had faced negative growth for two consecutive fiscal years, are expected to recover. In the last fiscal year, the industry sector contracted by 2.02%, while the construction sector saw a decline of 2.20%. However, projections indicate industry sector growth of 3.78% and construction sector expansion of 2.21% in 2024/25. The electricity and gas sector is expected to achieve the highest growth rate this fiscal year, with electricity projected to expand by 13.82%.

The preliminary estimate for per capita gross national income in fiscal year 2024/25 is $1,517, while the revised estimate for the previous fiscal year stands at $1,467.

Chief Statistician at NSO, Maddhu Sudan Burlakoti, stated that economic growth, which had weakened due to Covid19 pandemic, Jajarkot earthquake, and floods and landslides, is now showing consistent improvement.