NSO estimates 4.8% GDP growth

By A Staff Reporter,Kathmandu, July 10: The gross domestic product (GDP) at basic prices is preliminary estimated to grow by 4.8 per cent in the third quarter of the current fiscal year 2024/25.

In the preliminary seasonally unadjusted quarterly GDP report made public by National Statistics Office (NSO), it estimated an increase of 4.8 per cent in gross domestic product in the third quarter of the current fiscal year as compared to the corresponding quarter of the previous fiscal year 2023/24.

The positive growth of the economy in the third quarter was mainly due to the increase in electricity generation and distribution, growth in the construction, finance and insurance and in mining and quarrying sectors.

Overall, all 18 industrial sectors included in this quarter are estimated to have positive growth rates, said the report.  The growth rate of the economy is estimated to remain moderate, especially as the education sector; water supply; sewerage, waste management and accommodation; and food service sectors have not seen significant growth during this period.

As per the estimation of the NSO, the activity related to electricity generation and distribution has the highest growth rate of 12.5 per cent while construction sector is the second highest growing at a rate of 6.9 per cent. 

Likewise, the mining and quarrying and financial and insurance sector accounted for 6.7 per cent each during the review period.

Similarly, the value-added growth in information and communication sector is estimated at 6.6 per cent, the transportation and storage at 6.3 per cent and manufacturing at 6.2 per cent.

The agriculture sector, which contributes the most to the economy, is initially estimated to grow at 3.6 per cent, said the NSO.

The wholesale and retail trade sector, the second largest sector of the economy, is estimated to have grown by 5.6 per cent in the third quarter of the current fiscal year 2024/25, driven by an increase in domestic production of agricultural traded goods and an increase in imports of major products.

Similarly, it is estimated that education sector will grow by 2.3 per cent, the water supply, sewerage, and waste management sector by 2.4 per cent and accommodation and food service sector by 2.5 per cent.

However, seasonally adjusted quarterly GDP at the basic price is estimated to increase only by 0.6 per cent in the third quarter of the current fiscal year compared to the second quarter of the current fiscal year 2024/25.

Looking at seasonally adjusted quarterly gross value added, economic activities increased in 15 of the total 18 economic sectors in the third quarter of the current fiscal year (Magh, Falgun and Chaitra) compared to the second quarter of the current fiscal year (Kartik, Mangsir and Poush), said the NSO. 

The value-added growth of three sectors such as transportation and storage, finance and insurance and accommodation and food service, however, was negative during the review period.

However, the electricity and gas sector is estimated to grow more than other sectors.

The electricity generation and gas sector is expected to see the highest growth of 5.5 per cent, followed by other service sectors at 2.5 per cent.

The growth rate of the agriculture, forestry, and fisheries sector, which accounts for the largest share of the economy, has remained at a modest 0.7 per cent during the review period

Among the three industrial sectors with negative growth, transportation and storage sector had the highest negative growth rate of 3.3 per cent.

Similarly, the growth rate of financial and insurance activities has tumbled to a negative of 1.6 per cent and the accommodation and food sector of 0.8 per cent.