Nepal’s economy is projected to expand by 3.85% in the current fiscal year, outpacing the projected global growth average of 3.1%. With this, the total size of the country's economy has reached Rs 6.6 trillion, pushing Nepal's per capita national income to $1,535. Although Bagmati and Gandaki provinces have seen growth above the national average, the growth rate of other provinces is below average.
According to the Economic Survey , the contribution of agriculture sector to the GDP is estimated to be 24 percent and the non-agricultural sector is 76 percent. Bagmati Province continues to dominate economic activities, contributing 36.7 percent to the GDP. However, the production of rice, a major food grain crop, shrank by 4.20 percent to 5.75 million metric tonnes, the survey showed.
Similarly, the federal revenue has increased by 3.2 percent in the first six months of the current fiscal year. According to survey, although the government expenditure has increased by 10.4 percent, there has been no significant improvement in the capital expenditure. The total public debt of the government has reached Rs 2.878 trillion, which is 43.6 percent of the GDP. This year, the government has mobilized Rs 300 billion in public debt.
The survey shows that the external sector of the country is very strong. The remittance inflow has increased by 37.7 percent to reach Rs 1.45 trillion. The foreign exchange reserves reached a historic high of Rs 3.414 trillion, which is enough to sustain the import of goods and services for 18.5 months. However, the increase in trade deficit by 11.2 percent to Rs 1098 billion has become a challenge for the economy.
Moreover, there has been a significant progress in technology-friendly payments. The transaction through QR codes has crossed Rs 125 billion till mid-March. Likewise, Nepal has achieved a stable outlook in the sovereign credit rating for 2025, indicating that Nepal's reputation in the international arena has improved. Inflation, however, remained under control, averaging 2.13 per cent.
Nepal has made progress in the human development index. The Human Development Index (HDI) is 0.622 years and the average life expectancy of Nepalis is 71.3 years. In the health sector, the maternal mortality rate has come down to 151 per 100,000 and the child mortality rate under five years has come down to 33 per 1,000. Similarly, the net enrollment rate in the basic level education has reached 97.8 percent while the people's enrollment in health insurance and social security fund has been increasing.
