Nepal’s economy is projected to grow by 4.61 percent, reaching Rs6.17 trillion in the current fiscal year, according to the annual national accounts released by the National Statistics Office on Wednesday. This growth reflects a recovery from last year, when many economic indicators were negative.
The growth projection is based on actual data for the first nine months of the fiscal year and estimates for the final quarter up to mid-July. However, this projected growth falls short of the government’s initial target of 6 percent. Last fiscal year, Nepal’s economy grew by 3.67 percent. “This year’s 4.61 percent growth indicates that the economy is on a path to recovery,” said Madhusudan Burlakoti, secretary at the National Statistics Office.
Per capita gross national income (GNI)—which measures the total income earned by a country’s residents—is expected to rise to $1,517 this fiscal year, up from $1,467 the previous year. GNI encompasses income from domestic production (GDP) and net income from abroad, providing a comprehensive view of a nation’s economic well-being.
Similarly, per capita GDP—representing the total market value of goods and services produced within the country—is estimated to reach $1,496, up from $1,443 last fiscal year. This figure represents the average income per person and the overall production capacity. Final consumption expenditure, or the total spending by Nepalis on goods and services, is expected to reach Rs 5.77 trillion, accounting for 93.45 percent of the GDP.
This suggests that savings remain low, with the average person putting aside only 6.55 percent of their income. Officials expressed concern over this low savings rate. Worker remittances are projected to account for 25.89 percent of GDP this fiscal year, underscoring the continued reliance on income from Nepalis working abroad. Meanwhile, gross national savings are expected to improve slightly to 36.24 percent, up from 35.39 percent last fiscal year.
The agricultural sector, which contributes 25.16 percent to the GDP, is expected to grow by 3.28 percent. The non-agricultural sector is projected to grow by 4.28 percent. Among economic sub-sectors, electricity and gas are expected to lead growth at 13.82 percent, followed by transport and logistics at 9.45 percent. The rapid expansion of electricity generation and distribution in cities and towns has driven this strong performance in the power sector, the National Statistics Office said.
On the other hand, education (1.98 percent) and the mining and minerals sector (1.99 percent) are projected to experience the slowest growth. The manufacturing sector, which accounts for 4.98 percent of GDP, is expected to grow by 3.78 percent this year. This marks a recovery from a 2.02 percent contraction in the previous fiscal year. Officials attribute the rebound to increased production of items such as vegetable oil, plywood, plastic fittings, paving stones, cement, and sawn timber.
Source: Here