NSO reports robust 3.2% GDP growth in Q1 of fiscal year 2023-24

KATHMANDU: In the first quarter of the fiscal year 2023-24, the National Statistics Office (NSO) revealed a preliminary estimate of a 3.2% growth in the gross domestic product at the basic price.

The quarterly GDP report, which was released on Thursday, showed a 3.2% increase in the gross domestic product compared to the same period last fiscal year. The NSO projected a notable 15.8% rise in the total value of mining and quarrying during this quarter.

Although the value addition in sand, gravel, and stone excavation remained relatively low, the construction sector is expected to experience an 11.4% increase, significantly impacting overall production. The financial and insurance sector’s value addition is estimated to grow by 13.2%, driven by factors such as increased deposits, loans, and changes in interest rates.

The accommodation and food service sector is also predicted to grow by 11.7%, attributed in part to a substantial increase in tourist arrivals during the first quarter of the fiscal year. The agriculture, forestry, and fisheries sector, which holds a significant contribution to the economy, is estimated to grow by 1.4%, with rice production playing a role in this increase.

On the downside, the wholesale and retail trade sector is expected to witness a 1.2% decline in gross value addition compared to the same period last year, influenced by a decrease in tradable goods.

The manufacturing sector, electricity, gas, steam, air conditioning supply, real estate sector, administrative and support service activities, human health and social work activities, and education are all projected to experience varied growth rates during the review period.

However, the seasonally adjusted quarterly gross domestic product at the basic price is estimated to decrease by 1.4% in the first quarter of the current fiscal year compared to the fourth quarter of the previous fiscal year. The NSO reported that economic activities increased in 12 out of the total 18 economic sectors during the first quarter, while six sectors saw a decrease in production.

The water supply, sewerage, and waste management sector are anticipated to experience a 7.3% increase in total value added. Meanwhile, sectors like financial and insurance, public administration, defence, information, and communication are expected to see positive growth, with a 21.9% decrease estimated in the electricity and gas sector due to a decline in electricity production.

Wholesale and retail trade, construction, mining and quarrying, and the industrial sector are projected to decrease during the first quarter of the current fiscal year.