Kathmandu: The economic growth rate has increased and inflation has decreased in the last Fiscal Year 2024/25 as compared to the previous fiscal year. According to Nepal Rastra Bank’s (NRB) report entitled Current Macroeconomic and Financial Situation of Nepal (Based on Annual Data (Mid-July 2025 of 2024/25), the economic growth rate for 2024/25 has been estimated to be 4.61 percent, up from 3.67 percent in the previous year.
According to National News Agency Nepal, the agriculture, industry, and service sectors are estimated to grow 3.28 percent, 4.53 percent, and 4.21 percent respectively. The shares of these sectors in GDP for 2024/25 are 25.16 percent, 12.83 percent, and 62.01 percent respectively. The report highlights that gross domestic saving to GDP stands at 6.55 percent in 2024/25, while the ratio of gross fixed capital formation and gross national saving to GDP stands at 24.07 percent and 36.24 percent respectively.
Annual average inflation remained at 4.06 percent in 2024/25, a decrease from 5.44 percent the previous year. The y-o-y consumer price inflation was recorded at 2.20 percent in mid-July 2025, compared to 3.57 percent a year ago. Under the food and beverage category, the annual average consumer price index for vegetables increased by 10.71 percent, ghee and oil by 8.72 percent, pulses and legumes by 7.90 percent, and cereal grains and their products by 6.13 percent. However, the index for spices decreased by 2.62 percent, and meat and fish by 0.34 percent.
The annual average non-food and services category inflation stood at 3.71 percent in 2024/25 compared to 4.64 percent a year ago. The y-o-y non-food and services category inflation was 4.12 percent in mid-July 2025, up from 3.26 percent a year ago. The NRB report also indicated that the Balance of Payments remained at a surplus of Rs 594.54 billion compared to Rs 502.49 billion last year.
Imports and exports increased by 13.3 percent and 81.8 percent respectively, reversing the previous year’s decrease of 1.2 percent and 3.0 percent. Remittances increased by 19.2 percent in NPR terms and 16.3 percent in USD terms, with remittance inflows standing at Rs. 189.11 billion during mid-June to mid-July 2025.
Gross foreign exchange reserves stood at 19.50 billion USD, enough to cover merchandise and services imports for 15.4 months. Broad money (M2) increased by 12.5 percent in 2024/25, slightly down from a 12.9 percent increase the previous year. Deposits at BFIs increased by 12.6 percent, amounting to Rs 7264 billion, while private sector credit increased by 8.4 percent, amounting to Rs 5498 billion in 2024/25.
The installed capacity of electricity increased to 3591 Megawatts in 2024/25, with 3390 Megawatts from hydroelectricity. The total number of tourist arrivals increased by 1.7 percent to 1,147,834 in 2024/25.