Economic Survey 2082/83: Nepal’s Economy Grows by Only 3.85%, Foreign Exchange Reserves Reach Historic High

According to the Economic Survey presented by Finance Minister Swarnim Wagle in the House of Representatives on Wednesday, Nepal’s economy is projected to grow by just 3.85 percent in the current fiscal year. “Due to uncertainties in the global economy, trade disruptions, and ongoing conflicts in the Middle East and East Asia, the global growth rate for 2026 is expected to be limited to 3.1 percent,” Finance Minister Wagle stated while presenting the economic survey. “Nepal’s economy is forecasted to expand by 3.85 percent in this fiscal year.” Last fiscal year, Nepal’s economic growth rate was 4.43 percent.

As per the Economic Procedures and Financial Accountability Act, 2076, the economic survey for the current fiscal year must be presented in the federal parliament before submitting the revenue and expenditure estimates for the upcoming fiscal year. The government is constitutionally required to present the annual budget for the new fiscal year by Jestha 15. Minister Wagle described the economic survey as a comprehensive depiction of the country’s overall economic situation, encompassing real, public finance, monetary, financial, and external sectors.

While external sector indicators such as foreign exchange reserves and balance of payments have strengthened, indicators related to government capital expenditure and revenue mobilization remain unsatisfactory. “Although macroeconomic stability, external sector robustness, and social indicators have improved, challenges persist including low economic growth, sluggish loan disbursement, rising trade deficit, weak capital expenditure, and climate risks,” Minister Wagle said.

Key Figures:
Economic Growth Rate: 3.85%
Gross Domestic Product (GDP): NPR 66 trillion
Total Public Debt: NPR 28.78 trillion
Trade Deficit: NPR 10.98 trillion
Foreign Exchange Reserves: NPR 34.14 trillion
Net Foreign Asset Position: NPR 6.58 trillion
Remittance Inflow: NPR 14.50 trillion
Inflation Rate: 2.13%
Rice Production: 5.7 million metric tons (4.2% decrease)
Total Installed Electricity Capacity: 4,105 MW
Electricity Access Usage: 99.1% of the population
Average Life Expectancy: 71.3 years
Digital Transactions: NPR 1.25 trillion

Minister Wagle estimated that the total size of Nepal’s economy will reach NPR 66 trillion in the current fiscal year, with a per capita gross national income of approximately US$1,535. The economic survey also revealed that consumption comprises a high share of the economy. “The consumption share in total gross domestic product for the current fiscal year is estimated to be 90.3 percent,” the report stated.