Nepal’s Economy Grows 3.51% in Third Quarter, Led by Power and Financial Sectors

Nepal's Gross Domestic Product (GDP) is estimated to have grown by 3.51% in the third quarter of the current fiscal year, according to preliminary national accounts released by the National Statistics Office (NSO) on Monday. The year-on-year growth, measured at basic prices against the corresponding period of FY 2024/25, was driven primarily by improvements in electricity generation and distribution, banking activities, non-life insurance, and trade services. However, weaker construction material imports, lower paddy production, and reduced output of certain domestic goods limited the overall pace of economic expansion. Of the economy's 18 industrial sectors, 16 recorded positive growth, with the electricity, gas, steam and air conditioning supply sector posting the highest expansion at 24.88%. The financial and insurance sector grew 10.27%, followed by transportation and storage (7.83%) and wholesale and retail trade (5.25%). The agriculture, forestry, and fishing sector, which contributes the largest share to the economy, expanded by a modest 1.58%, supported by gains in livestock and vegetable production despite lower paddy output. Meanwhile, public administration and defence contracted by 1.59%, while manufacturing declined 0.54%. On a seasonally adjusted basis using the International Monetary Fund (IMF) methodology, the economy is estimated to have grown by 0.58% in the third quarter compared to the previous quarter.