Stability in Nepal's Economic Growth: A Five-Year Analysis

Kathmandu, September 26 - Nepal's economic growth has shown signs of stability and improvement over the past five fiscal years. During this period, the Gross Domestic Product (GDP) and National Income have seen positive growth, although challenges remain.

Review of Economic Growth

In the fiscal year 2019/20, Nepal's real GDP contracted by -2.4% due to the impact of COVID-19. However, the following year, 2020/21, saw a recovery with a 4.5% growth. The trend of improvement continued, with real GDP growing by 2.3% in 2022/23 and 3.5% in 2023/24.

Growth in Nominal GDP

Nominal GDP also experienced significant improvement. After a modest growth of 0.8% in 2019/20, nominal GDP surged by 11.9% in 2020/21 and 14.3% in 2021/22. The growth momentum continued in 2023/24, with a 6.7% increase.

National Savings and Investment

The country's gross national savings as a percentage of GDP decreased from 32.2% in 2019/20 to 29.6% in 2021/22. However, it rebounded in the last two years, reaching 36.2% in 2023/24. This improvement indicates a better investment environment in Nepal.

Challenges Ahead

While the recent economic growth shows encouraging signs, maintaining stability in the coming years presents various challenges. Sustainable economic growth will require continued stable investment, political stability, and consistent development priorities.

In conclusion, Nepal's economic growth has shown positive trends, and collaboration between the government and the private sector will be crucial to further strengthening this growth in the years ahead.