July 6: Nepal’s economy expanded by 3.51% in the third quarter, according to a recent report, even as the country continues to experience a prolonged economic slowdown.
The report said the growth was driven by modest improvements in agriculture, services, and domestic trade. However, overall economic activity remained under pressure due to weak investment levels and subdued industrial performance.
It added that inflation concerns, limited private sector spending, and external economic pressures continue to weigh on growth prospects. Despite this, gradual recovery in consumption and select sectors provided some support to overall economic output.
Analysts said sustained reforms and stronger investment flows will be important to support more stable and higher growth in the coming quarters.