Monday, 29 November, 2021

Nepal to achieve 4% economic growth


By Laxman Kafle
Kathmandu, May 1:  Nepal's economic growth rate is expected to be 3.98 per cent in the current fiscal year 2020/21. According to the latest data prepared on the basis of the data and information relating to the economic sector from the first seven months to the nine months of the current fiscal year, the GDP growth rate at basic prices is estimated to be 3.98 per cent.
The growth rate of GDP at the purchase price is estimated to be 4.01 per cent in the current fiscal year.
The Central Bureau of Statistics (CBS) has made the estimates based on the data available up to the third quarter of the current fiscal year.
The economic growth rate was negative at 2.12 per cent in the last fiscal year and 6.39 per cent the previous fiscal.
Contribution of the service sector to the GDP has slightly increased. However, the contribution of the primary and secondary sectors has declined.
Among the economic sectors, the primary sectors in the industrial group include agriculture, forest, fisheries and mining. The contribution of this sector to the GDP is estimated at 26.4 per cent.
Contribution of the industry and construction sectors is estimated at 12.5 per cent while the service sector’s contribution is expected to be 61.1 per cent.
In the current fiscal year, the Gross Value Added (GAV) rate of agriculture, forestry, fisheries and mining and
excavation is estimated to remain stable at 2.75 per cent.
Although the condition of agriculture, forest, fisheries and mining and excavation is weak in the current fiscal year, it has remained the same as last year due mainly to the increase in paddy production, said the CBS.
Similarly, the CBS projected that the construction sector would contribute 5.68 per cent to the GDP. The total inflation rate of construction sector, water supply, industry and electricity is expected to be around 5 per cent.
The contribution of the wholesale and retail trade to the GDP is estimated to be at 15.67 per cent, transportation and storage at 5.43 per cent and accommodation and food and services activities at 1.56 per cent.
Likewise, the contribution of information and communication sector to the GDP will be at 2.17 per cent, financial intermediation at 6.88 per cent, real estate activities at 9.43 per cent and public administration and defence at 7.7 per cent in the current fiscal year.
The contribution of education sector will be 8.05 per cent, human health and social work activities at 1.73 per cent and other economic sectors at 0.61 per cent, according to the CBS projection.