Himal Press 
KATHMANDU: The national economy recorded modest year-on-year growth in the first three months of fiscal year 2025/26, even as short-term indicators showed a decline, the National Accounts Estimates published by the Nepal Statistics Office (NSO) shows.
As per the seasonally unadjusted data, Gross Domestic Product (GDP) at basic prices increased by 3.02% in the first quarter compared to the same period last year.
The annual growth remained weak due to a slowdown in several production-related sectors. Output declined in food grain crops, forestry products, life insurance services, and domestically produced construction materials. However, stronger performance in electricity generation and distribution, financial services, livestock, fruits and vegetables, trade, and tourism helped keep overall GDP growth positive.
NSO estimates show that all 18 industrial sectors posted growth on a year-on-year basis during the quarter.
However, estimates based on seasonally adjusted figures show the economy shrank by 1.68% compared to the fourth quarter of 2024/25. According to the NSO, this contraction was driven by declines in 13 out of 18 sectors, which outweighed limited growth in the remaining five sectors.
