Second quarter's growth estimated at 4.05%

Kathmandu, Apr. 7: The National Statistics Office (NSO) has estimated 4.05 per cent growth in the gross domestic product (GDP) at the basic price in the second quarter of the current fiscal year 2025/26.

According to the quarterly GDP estimation report released by the NSO on Monday, the seasonally unadjusted quarterly GDP at basic prices is estimated to have been 4.05 per cent in the second quarter of the current fiscal year compared to the corresponding period last fiscal year.

The growth was primarily driven by increases in electricity production and distribution, deposit collection and credit flow, non-life insurance premium collection, livestock production, fruit and vegetable production, trade services, and tourism arrivals.

However, compared to the second quarter of fiscal year 2024/25, growth was tempered by declines in the import of construction materials, paddy production, and domestic production of certain goods, resulting in a moderate overall growth rate for the quarter.

According to the NSO, the total value-added growth rates of all 18 industrial classifications of the economy are positive. 

Among them, the highest growth rate is observed in the electricity and gas-related activities at 22.74 per cent. 

This sector is followed by financial and insurance activities, transportation and storage, accommodation and food services, and wholesale and retail trade, with estimated growth rates of 12.51 per cent, 9.65 per cent, 5.18 per cent, and 4.11 per cent, respectively.

The agricultural sector, which contributes the most to the economy, is estimated to have a growth rate of 2.21 per cent. 

Although paddy rice production has decreased, moderate growth in livestock, vegetable and fruit cultivation, and forestry production has had a positive impact on the total value-added of this sector. 

Similarly, the wholesale and retail trade sector, which constitutes the second-largest part of the economy, is estimated to have grown by 4.11 per cent. Growth in both domestically produced and imported trade goods drove this sector's increase.

On the other hand, activities such as water supply, sewerage, and waste management estimated a low growth of 0.55 per cent, public administration, defense, and mandatory social security of 1.11 per cent, and education of 1.16 per cent.

Based on seasonally adjusted data, GDP at basic prices is estimated to have grown by 2.04 per cent in the second quarter of fiscal year 2025/26 compared to the first quarter of the same fiscal year. 

Among the 18 industrial sectors, 16 recorded growth, while two experienced slight contractions, resulting in a moderate overall increase in GDP.

During this period, the agriculture, forestry, and fisheries sector grew by 2.48 per cent while the wholesale and retail trade sector grew by 0.99 per cent.

Among the 16 industrial indicators with positive growth, the highest growth was in the transport and storage sector at 6.20 per cent, followed by human health and social work activities at 3.98 per cent, and financial and insurance activities at 3.82 per cent.