Himal Press 
KATHMANDU: Nepal’s gross domestic product (GDP) at basic prices with seasonal adjustment is estimated to have grown by a mere 0.7% in the second quarter of 2023/24 compared to the first quarter. The slow growth is mainly due to contraction in six out of 18 sectors, according to the NSO.
GDP growth at basic prices without seasonal adjustment, however, is estimated to have grown by 4% in the second quarter of the current fiscal year 2023/24 compared to the same quarter of the previous fiscal year. According to the data released by the National Statistics Office (NSO) on Tuesday, the positive growth in the second quarter is mainly attributed to the increase in the production of paddy and other food grains, other agricultural products and the tourism sector. “Additionally, a slight increase in the trade sector and positive growth in the other services sector have also contributed to the overall positive growth of the economy,” the NSO said in a statement.
Comparing the second quarter of the current fiscal with the same period of 2022/23 at the sectoral level without seasonal adjustment, 17 out of 18 industrial sectors registered positive growth. Of them, activities related to accommodation and food services recorded the highest growth rate of 29.3%, followed by the electricity and gas sector with a growth rate of 17.1%. The transportation and storage sector recorded a growth rate of 14.3%.
Likewise, the mining and quarrying sector is estimated to have registered value addition of 9.4%. The financial and insurance sector is estimated to have posted growth of 9.1%. Similarly, the agriculture, forestry, and fisheries sector, which occupy the largest share in the economy, is estimated to have expanded by 3%. The growth in the production of paddy and other food grains, as well as livestock products, has contributed positively to the growth of this sector, according to NSO.
However, the growth in the wholesale and retail trade sector was limited to 0.5% in the review quarter owing to a decline in imports. The manufacturing sector recorded a negative growth of 0.4% in the review quarter.
Looking at the seasonally adjusted data, the preliminary estimates show that six out of 18 sectors witnessed negative growth in the second quarter of the current fiscal year compared to the first quarter. The agriculture, forestry, and fisheries sector is estimated to have a growth rate of 2.6%. Among the sectors with negative growth, the construction sector recorded the highest negative growth of 7.2% as construction activities could not gain momentum in the second quarter compared to the first quarter.
