Nepal’s Economy Estimated to Grow 3.51% in Third Quarter of FY 2025/26

Nepal's economy is estimated to have expanded by 3.51% during the third quarter (mid-January to mid-April) of the fiscal year 2025/26, according to the preliminary Quarterly National Accounts released by the National Statistics Office. The estimate marks an improvement compared to the same period of the previous fiscal year, supported by stronger performance in electricity generation and distribution, deposit mobilization and lending, non-life insurance premium collection, and wholesale and retail trade. Among the 18 industrial sectors included in the national accounts, 16 are projected to record positive growth, with the electricity and gas sector leading at 24.88%, followed by financial and insurance activities (10.27%), transportation and storage (7.83%), and wholesale and retail trade (5.25%). The agriculture sector, which accounts for the largest share of the economy, is estimated to grow by 1.58%, supported by modest increases in livestock, vegetables, fruits, and forestry production despite lower paddy output. However, public administration and defense is projected to contract by 1.59%, while the manufacturing sector is expected to decline by 0.54%, reflecting weaker construction material imports, lower paddy production, and reduced output of some domestic goods.