In its mid-term budget review, the government revised the economic growth forecast for fiscal year 2025/26 down to 3.5%, falling short of the initial 6% target. The downgrade is attributed to declining paddy output, slower construction activity, and a downturn in the real estate sector. GDP growth in the first quarter stood at 3%. While the industrial sector expanded by 5.44% , largely driven by energy projects, agricultural value-added growth remained modest at 1.36%. Despite slower expansion, average inflation during the first six months remained stable at 1.7%, significantly lower than last year’s 4.97%.
