Economy likely to grow by 4 percent

By TRN Online, Kathmandu, Jan 2: The Central Bank’s preliminary forecast has shown that the economy is likely to grow by 4 percent in the fiscal year (FY) 2024/25 measure in term of the current price benchmark. The economic growth in terms of consumer price, however, is estimated to increase by 4.6 percent.

According to the Nepal Rastra Bank’s annual report on the economic activities released on 1 Jan 2026, the revised economic growth for the FY 2023/24 is estimated 3.7 per cent.

The proportion of the agriculture sector in the gross domestic product (GDP) is estimated to be 25.2 per cent, industrial sector 12.8 per cent and service sector 62 per cent in the FY 2024/25.

Bagmati Province’s share of GDP likely to be highest in the Country’s GDP with estimated proportion of 36.5 per cent and proportion of Koshi Province is estimated 15.9 per cent. The share of Karnali Province is estimated lowest with 4.2 per cent.

According to the report, the per capital Gross National Income is estimated to be USD 1517. 

The report indicated that the aggregate damage in infrastructure during Gen-Z agitation is estimated of Rs 84.4 billion.

The report suggested that the preliminary prospective in the current FY based on the inquiry with the government’s officials is likely to be improving in agriculture, industry and service in comparison to the previous FY. 

The average consumer’s inflation stayed 4.06 per cent in the current fiscal year (FY) as the pressure of inflation ease across the world due to fall in fuel price and consumable price. 

Also, the inflation is likely to stay around 4 per cent given that the fuel price in the world market likely to drop, deepening inflation in India, decline in the production of rice in the country and likely increase of spending in upcoming election.