Gandaki Province leads Nepal’s economic growth with 5.51pc expansion in 2024-25

KATHMANDU: Gandaki Province has emerged as Nepal’s economic frontrunner, achieving the highest growth rate among the country’s seven provinces for the fiscal year 2081/82, according to data released by the National Statistics Office on Monday. With an estimated economic growth rate of 5.51% at consumer prices, Gandaki surpasses the national average of 4.61% and outpaces all other provinces, signaling robust regional development.

The National Statistics Office projects that Bagmati Province follows closely in second place with a 5.18% growth rate, making it and Gandaki the only provinces exceeding 5% growth. Karnali ranks third with a 4.74% growth rate, followed by Lumbini at 4.70%, Madhesh at 4.50%, Koshi at 3.34%, and Sudurpaschim at 3.32%. While four provinces—Gandaki, Bagmati, Karnali, and Lumbini—exceed the national average, Koshi, Madhesh, and Sudurpaschim fall below it. Notably, all provinces have shown improved growth compared to the previous fiscal year, when rates ranged from 3.26% (Karnali) to 3.94% (Madhesh).

The report highlights positive growth across all sectors in every province, with the electricity and gas sector recording the highest national growth rate. At the provincial level, this sector leads in growth for all provinces except Lumbini and Karnali, where transportation and storage take precedence. Gandaki’s economy, driven significantly by agriculture (27.10% contribution) and a 13.12% growth rate in electricity and gas, underscores its diverse economic base.

Bagmati Province remains Nepal’s economic powerhouse, contributing over one-third (36.52%) to the national GDP, estimated at NPR 61.07 trillion for 2081/82. Bagmati’s share alone is NPR 22.30 trillion, followed by Koshi at 15.90% (NPR 9.71 trillion), Lumbini at 14.23% (NPR 8.69 trillion), Madhesh at 13.16% (NPR 8.04 trillion), Gandaki at 8.98% (NPR 5.48 trillion), Sudurpaschim at 7.03% (NPR 4.30 trillion), and Karnali at 4.19% (NPR 2.56 trillion). Bagmati’s dominance is driven by its wholesale and retail trade sector (22.55% contribution), with electricity and gas posting the highest growth rate at 19.95%.

Agriculture remains the cornerstone of the economy in all provinces except Bagmati, where wholesale and retail trade leads. In Koshi, agriculture contributes 34.05%, with electricity and gas growing at 9.36%. Madhesh’s agriculture sector accounts for 36.73%, with electricity and gas leading growth at 9.83%. Lumbini’s agriculture contributes 31.02%, but transportation and storage see the highest growth at 9.70%.

In Karnali, agriculture accounts for 30.1%, with transportation and storage growing at 10.54%. Sudurpaschim’s agriculture contributes 34.72%, with electricity and gas at 8.73%. In Bagmati, real estate is the second-largest contributor after trade, while public administration and defense rank second in Gandaki, Lumbini, Karnali, and Sudurpaschim.

Significant disparities exist in per capita income across provinces. Bagmati leads with an estimated $2,602 per capita GDP, far exceeding the national average of $1,496. Gandaki follows at $1,619, Koshi at $1,401, Lumbini at $1,201, Sudurpaschim at $1,153, and Karnali at $1,089. Madhesh trails with the lowest per capita income at $932, highlighting stark regional inequalities despite Bagmati’s outsized economic contribution.

The National Statistics Office’s data reflects a positive economic trajectory for Nepal, with Gandaki’s standout performance signaling potential for balanced regional growth. However, addressing disparities in per capita income and sustaining sector-specific growth will be critical for equitable development across all provinces.