Nepal’s economy grows 4.05 pc in Q2 of current FY 2025/26: NSO report

KATHMANDU: Nepal’s economy grew by 4.05% in second quarter of current fiscal year 2025/26, National Statistics Office (NSO) said in a report.

The figures cover the period from October 18 to January 14. On a seasonally adjusted basis, the NSO said the economy expanded by 2.04% compared with the first quarter of the current fiscal year.

The largest contributor to growth was the electricity, gas, steam and air conditioning supply sector, which rose 22.74% year-on-year. Financial and insurance activities grew by 12.51%, while transportation and storage expanded by 9.65%. Accommodation and food services increased by 5.18% and wholesale and retail trade by 4.11%.

Agriculture, forestry and fishing, the sector with the largest share of the economy, recorded growth of 2.21%. The NSO said agricultural expansion was supported by improvements in livestock, vegetables, fruits and forest products despite a decline in paddy production.

Some sectors showed only modest gains: water supply and waste management rose 0.55%, public administration and defence grew 1.11%, and education increased 1.16%. The NSO noted that all 18 industrial classifications registered positive year-on-year growth, but the overall pace was tempered by a fall in imports of construction materials and reduced domestic production of certain goods.

For seasonal adjustments, the NSO used the X-12a ARIMA method and reported constant price estimates with fiscal year 2067/68 (2010/11) as the base year. The office said these preliminary quarterly national account estimates are published within 90 days of the end of each quarter to provide timely indicators for policymakers and stakeholders.

Meanwhile, the NSO has invited further inquiries and technical questions to be directed to its Deputy Chief Statistician and Spokesperson, Dhundi Raj Lamichhane.