Nepal’s Economic Pulse: A Deep Dive into the Q2 2025/26 GDP Report
Summary
Nepal's economy grew by 4.05% in Q2 of fiscal year 2025/26, driven by a 22.74% surge in the energy sector and strong financial services growth, despite challenges in agriculture and construction.
Key Points
- Nepal's GDP grew by 4.05% year-on-year in Q2 of fiscal year 2025/26, improving from 3.8% the previous year.
- The electricity, gas, steam, and air-conditioning supply sector led growth with a 22.74% increase due to new hydroelectric projects and energy exports.
- Financial and insurance sectors grew 12.51% supported by increased deposits and credit flow.
- Agriculture grew modestly at 2.21%, hindered by erratic monsoon and reduced paddy production, reflecting structural challenges.
