After a period of stagnation, Nepal’s construction industry is showing promising signs of revival. According to the National Statistics Office (NSO), the sector experienced a 9.1% growth in the second quarter of FY 2024/25, a significant rebound from the negative 0.3% in the preceding quarter. This resurgence is attributed to increased imports and local production of construction materials between mid-October and mid-January .
The construction sector is pivotal to Nepal’s economy, contributing approximately 9.5% to the national GDP in recent years . However, challenges such as low capital expenditure and delayed project implementations have previously hindered its growth . The recent uptick suggests a positive shift, potentially driven by policy reforms and increased investment in infrastructure projects.
To sustain this momentum, stakeholders emphasize the need for consistent government spending, streamlined procurement processes, and enhanced private sector participation. Addressing these areas could solidify the sector’s growth trajectory, ensuring long-term economic benefits for the nation.
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