Nepal's economy grows 3.51 pc in FY 2025/26 Q3: NSO

KATHMANDU: Nepal’s economy expanded by an estimated 3.51% in the third quarter of fiscal year 2025/26 compared with the same period last year, according to the latest quarterly National Accounts Estimates released by the National Statistics Office on Monday.

The seasonally adjusted growth rate for the third quarter was 0.58 percentage points higher than in the second quarter of the current fiscal year. The expansion was largely driven by increases in electricity generation and distribution, deposit collection and credit flow, non-life insurance premium collection and trade services.

Sectoral data showed the electricity and gas sector recorded the highest unadjusted growth at 24.88%, followed by financial and insurance activities at 10.27% and transportation and storage at 7.83%. The wholesale and retail trade sector, the second-largest contributor to the economy, grew by 5.25% amid higher domestic production and increased imports of tradable goods. The agriculture sector, which accounts for the largest share of the economy, expanded by 1.58%, supported by livestock, vegetables, and forestry, despite a fall in paddy production.

Two of the 18 industrial categories registered negative growth: public administration and defence fell by 1.59%, while industrial manufacturing contracted by 0.54%. Overall growth remained moderate, owing to declines in construction material imports and in certain domestic products.