Karnali Province’s GDP to grow marginally by Rs 22 billion to Rs 198 billion this year

Published On: May 6, 2022 06:30 AM NPT By: Republica | @RepublicaNepal

KATHMANDU, May 6: Bagmati Province, which also has the federal capital of the country, is estimated to contribute over one-third to the country’s gross domestic product (GDP) while the contribution of Karnali Province to the national GDP will stand below five percent in the current fiscal year.

According to a report unveiled by the Central Bureau of Statistics (CBS) on Thursday, Bagmati Province is expected to contribute 36.9 percent to Nepal’s total GDP. The province’s contribution is marginally higher than last year’s figure of 36.7 percent.

The CBS has projected that the country’s GDP will remain at Rs 4.852 trillion (at consumers’ price) in 2021/22. Out of the amount, Bagmati Province will contribute around Rs 1.791 trillion.

The contribution of Karnali Province is projected to be 4.1 percent, the least amongst the country’s seven provinces. Karnali is expected to have a GDP of around Rs 198 billion in the current fiscal year.

Similarly, Province 1 will contribute 15.7 percent to the national GDP, Lumbini Province will contribute 14.1 percent and Madhesh Province will contribute 13.2 percent. Likewise, the estimated contribution to the GDP by Gandaki Province and Sudurpaschim Province is 8.9 percent and seven percent, respectively.

According to the CBS report, the country’s GDP growth rate in the current fiscal will remain at 5.84 percent. Province wise, Bagmati is projected to record the highest economic growth rate of 6.7 percent while the lowest - just 4.9 percent - has been projected for Sudurpaschim Province. Last year, Bagmati Province’s growth was 4.6 percent, followed by that of Gandaki Province at 3.7 percent.

Sector wise, the contribution of agriculture to the national GDP will be the highest this year as well. According to the CBS, the service sector is flourishing in Bagmati Province due to the growing urbanization, large population and trade transactions. In the province, trading business followed by real estate transactions and private housing services contribute the most to the country’s GDP.