KATHMANDU: Finance Minister Dr. Swarnim Wagle presented the fiscal year 2025/26 Economic Survey in the Parliament today, projecting Nepal’s economy to grow by 3.85%, outpacing a global contraction estimate of 3.1%.

The total size of the economy is projected to reach Rs 6.6 trillion, with per capita national income climbing to $1,535.

While Bagmati and Gandaki provinces outperformed the national average, other provinces lagged.

The survey shows agriculture will contribute 24% and non-agriculture 76% to the GDP.

Bagmati Province dominated economic output, contributing 36.7% of the total, while major paddy production dipped by 4.20% to 5.705 million metric tons.

Federal revenue grew by 3.2% and overall spending rose 10.4%, though capital development spending stagnated.

Total public debt hit Rs 2.878 trillion, making up 43.6% of the GDP after a Rs 300 billion mobilization this year.

Nepal’s external economic sector showed significant strength.

Driven by a 37.7% spike in remittance inflows to Rs 1.45 trillion, foreign exchange reserves hit a historic record of Rs 3.414 trillion—enough to cover 18.5 months of imports.

However, the trade deficit swelled by 11.2% to Rs 1.098 trillion.

In digital banking, QR code transactions surpassed Rs 125 billion by March.

Internationally, Nepal secured a ‘BB-‘ stable sovereign credit rating for 2025, while average inflation remained low at 2.13%.

Social metrics also improved: the Human Development Index rose to 0.622, life expectancy reached 71.3 years, basic school enrollment hit 97.8%, and maternal and child mortality rates continued to decline.