Nepal’s economy could reach Rs 6.1 trillion in 2024/25

 

KATHMANDU, MAY 1: Nepal’s economy is projected to expand to Rs 6.1 trillion in the current fiscal year (FY)-2024/25, according to preliminary estimates released by the National Statistics Office. The annual national accounts report, published yesterday, also revised the size of the economy to Rs 5.79 trillion for the last FY-2023/24 and finalized it at Rs 5.367 trillion for th previous FY-2022/23

According to Rishi Ram Sigdel, Director at the National Statistics Office, Nepal first began preparing national accounts estimates in 2018/19. Since 2021/22, the data has been published on a regular basis. This year’s report includes preliminary estimates for the current FY, as well as revised figures for the previous two fiscal years, in line with the office’s standard revision process. The preliminary estimates for the current FY are based on available data from the first six to nine months, while statistical methods have been used to project the remaining period.

Madhu Sudan Burlakoti, Chief Statistical Officer at the office, stated that the data indicates Nepal’s economy is gradually recovering. He noted that the country’s economic growth, which had slowed during the COVID-19 pandemic, is now gaining momentum. “Based on the analysis of available data, we can say the economy is on a path to recovery this year. The figures are close to reality,” he said.

The national accounts are based on the constant prices from FY 2010/11. To measure economic growth, the office uses gross domestic product (GDP) at constant prices. As per the current estimates, Nepal’s GDP is expected to grow by 3.99 percent at basic prices and 4.61 percent at consumer prices in the current FY.

The revised GDP growth rate for the last FY is 3.36 percent at basic prices, while the final growth rate for the previous FY stood at 2.29 percent. At consumer prices, the growth rates for the last FY and the previous FY are estimated at 3.67 percent and 1.98 percent, respectively.

The national accounts system is a statistical framework used by governments and international organizations to measure and track the economic activities of a country. It provides a detailed record of the value of goods and services produced, consumed, and traded within a specific period.  Nepal’s national accounts are prepared in line with the internationally recognised System of National Accounts (SNA), jointly developed by the United Nations, European Union, World Bank, International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD).