Nepal's economy expands 3.02 pc in FY 2025/26 Q1: NSO

KATHMANDU: Nepal's economy expanded by 3.02% in the first quarter of fiscal year 2025/26, a report released by the National Statistics Office (NSO) shows.

The report, which uses fiscal year 2010/11 as the base year, indicates a steady year‑on‑year expansion despite some seasonal fluctuations.

The primary driver of the growth was the electricity and gas sector, which surged by 14.91%. Financial services and professional activities also contributed, growing by 7.07% and 5.52% respectively, while wholesale and retail trade rose by 3.89% on the back of higher imports and increased domestic production.

The agricultural sector faced challenges from a decline in paddy production but managed an overall growth of 1.36%, supported by livestock and fruit output.

Compared with the previous three‑month period (the fourth quarter of 2024/25), the economy recorded a seasonal contraction of 1.68%. The dip was largely attributed to significant declines in mining, quarrying and public administration activities.

The NSO publishes the quarterly estimates to provide more frequent insights into the country’s economic health and to assist policymakers and researchers in monitoring short‑term trends.