Electricity, Gas Sector Leads Nepal's GDP Growth with 24.36 Percent Surge

Kathmandu: Nepal’s electricity and gas sector recorded the highest growth of 24.36 percent in the fourth quarter of fiscal year 2025/26, emerging as the strongest-performing sector of the economy during the review period.

According to national accounts estimates released by the National Statistics Office (NSO), Nepal’s gross domestic product (GDP) grew by an estimated 4 percent in the fourth quarter compared to the same period of the previous fiscal year. The GDP estimate is based on prices of the fiscal year 2010/11.

The electricity and gas sector also made the largest contribution to quarterly economic expansion, with GDP increasing by 1.54 percent in the fourth quarter compared to the third quarter after seasonal adjustment.

Of the 18 sectors assessed by the NSO, 17 recorded positive growth, while public administration and defense were the only sectors to post negative growth.

Financial and insurance activities grew by 9.07 percent, followed by accommodation and food services at 7.84 percent, information and communication at 7.66 percent, and transport and storage at 6.81 percent. Wholesale and retail trade expanded by 5.97 percent, supported by improvements in domestic production and imports of traded goods.

Similarly, health and social work grew by 4.70 percent, other services by 3.82 percent, mining and quarrying by 3.34 percent, professional, scientific and technical activities by 3.19 percent, real estate by 2.68 percent, and construction by 2.38 percent.

The NSO attributed the improvement in economic activity partly to increased electricity generation and distribution, expansion of deposits and credit by banks and financial institutions, growth in non-life insurance premiums, and improved activity in the hotel and restaurant sector.

However, the overall pace of economic expansion remained moderate due to weak government spending and limited growth in agricultural and industrial production, the NSO said.