Kathmandu. According to the National Statistical Office’s (NFS) Estimates for the third quarter of the fiscal year 2082/83, Nepal’s economy has shown signs of improvement.

The Gross Domestic Product (GDP), measured in basic prices, is expected to grow by 3.51 percent in comparison to the corresponding period of the previous fiscal year.

According to the office, the economic growth has been mainly contributed by the expansion of electricity and gas production, distribution of electricity and gas, deposit collection and loan, non-life insurance, trade service and transport sector. The economy is expected to expand 0.58 percent in the third quarter compared with the second quarter, after weather-impact adjustments.

According to the industrial classification, 16 out of 18 sectors have seen positive growth. The highest growth rate was recorded in the electricity and gas sector at 24.88 percent. It is followed by financial and insurance (10.27 per cent), transport and storage (7.83 per cent) and wholesale and retail trade (5.25 per cent).

The agriculture sector, which is the largest contributor to the country’s economy, is expected to grow at 1.58 percent. According to the office, the increase in the production of livestock, vegetables, fruits and forest products has made the agriculture sector positive. Likewise, the expansion of the wholesale and retail trade sector has increased due to the increase in import of trade goods and domestic production.

However, the overall economic growth was relatively moderate due to decrease in import of construction materials, decline in rice production and fall in production of some industrial goods. According to the report, the public administration and defense sector and the industrial production sector were negative growth of 0.54 percent.

According to seasonal impact adjusted data, 11 out of 18 industrial sectors grew in the third quarter compared to the second quarter, while seven saw contraction. Electricity and gas sector increased by 6.87 per cent, mines and quarrying by 2.23 per cent and wholesale and retail trade by 2.02 per cent. The contraction was estimated in agriculture, forestry and fishery by 0.04 percent, housing and food by 2.30 percent and industrial production by 0.83 percent.

The National Statistical Office (NSO) has been preparing the quarterly national accounts using the fiscal year 2067/68 as the base year. The Office has made public this year’s report as per the practice of publishing preliminary estimates within 90 days of the end of each quarter.