Country's GDP grows by 3.4 pc in Q1 2024/25 compared to Q1 2023/24

KATHMANDU: National Statistics Office (NSO) has released the gross domestic product (GDP) estimates for the first quarter of current fiscal year 2024/25 (Mid-July to Mid-October). 

Economic Growth

Preliminary estimates indicate that the GDP at basic prices grew by 3.4% in the first quarter of 2024/25 compared to the same period in 2023/24. This growth is driven by increase in agricultural production, electricity generation, tourism arrivals, and the hotel sector. Likewise, transport, health services, and public administration also contributed positively. However, growth was tempered by floods, landslides, and a stagnant construction sector. 

With significant gains in electricity, and information and communication sectors, the GDP is expected to grow by 0.2% only in the first quarter of current fiscal year compared to the fourth quarter of last fiscal year.

Sectoral Growth

Comparing first quarter of current fiscal year with last year's corresponding quarter, 17 out of 18 industrial sectors showed positive growth. The electricity and gas sector led with 21.4% increase, followed by transportation and storage at 6.7%, and accommodation and food services at 6.3%. The financial and insurance sector grew by 5.7%, administrative and support services by 5.4%, and professional, scientific, and technical activities by 5.1%. The construction sector saw slight contraction.

The agriculture, forestry, and fishing sector grew by 3%, bolstered by higher crop and livestock production due to timely fertilisers, improved seeds, and good monsoon rains. However, growth was limited by flood and landslide damage.

The wholesale and retail trade sector grew by 0.5%, supported by modest increases in domestic production and imports of trade goods. The industrial manufacturing sector grew by 2.3%, reflecting improvements over the previous year's first quarter. Other service sectors, including education (0.4%), human health and social work (4.1%), and real estate (3.1%), showed normal growth.

Seasonally Adjusted GDP

Seasonally adjusted estimates for the first quarter of current fiscal year indicate increased production in 12 of 18 industrial sectors compared to the fourth quarter of last fiscal year. The electricity and gas sector is expected to grow the most at 8.5%, followed by the information and communication sector.