Kathmandu: Nepal’s economy recorded a 5.1% growth rate in the second quarter of the current fiscal year 2081/82 BS (2024/25 AD), according to preliminary estimates released by the National Statistical Office. The growth comes despite challenges in certain sectors, including education, housing, and food services. However, after adjusting for the impact of weather conditions, the growth rate stood at 2.2%.

The report highlights transportation and storage as the fastest-growing sector, expanding by 14.2%, followed by mining and quarrying, which grew by 9.5%. The construction sector also witnessed 9.1% growth, driven by increased imports and domestic production of construction materials. The financial and insurance sector saw a 6.6% rise, attributed to an increase in deposits and loans, while the trade sector expanded by 6.1%. The manufacturing industry also experienced a 7.4% growth rate.

The agriculture sector, which remains Nepal’s largest contributor to GDP, grew by 3.2%. The increase in rice, vegetable, ginger, winter fruit, and livestock production played a key role in boosting overall agricultural output.

Despite the positive economic trends, some sectors witnessed negative growth. The electricity and gas sector saw a decline of 4.8%, while the housing and food service industries contracted by 2.7%. The slowdown in these areas, coupled with sluggish progress in education, resulted in a modest overall growth rate.

The National Statistical Office noted that while Nepal’s economy is showing resilience, sectoral disparities and weather-related challenges remain concerns for sustaining long-term growth.