Nepal’s GDP projected to reach Rs 4.851 trillion, with growth rate of 5.84 percent in current FY

Published On: April 28, 2022 07:18 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, April 28: The Nepali economy is projected to grow by 5.84 percent (at consumers’ price) in fiscal year 2021/22, which is less than the government’s estimated growth rate of seven percent.

According to the Central Bureau of Statistics (CBS), the growth rate has been revised based on the performance of the economy in the past nine months of the current fiscal year. Prolonged impacts of COVID-19 and the efforts made at domestic and international levels to minimize the risk from the pandemic have affected the country’s economic growth rate.

With the receding impacts of the pandemic in recent days, economic activities are expected to return to normalcy in the rest of the period of the current fiscal year, says CBS in its press statement. In the revised figure, Nepal’s GDP will stand at Rs 4.851 trillion at the market price.

Estimated at the base year’s price (constant price), the country’s gross domestic product (GDP) is expected to expand 5.49 percent by the end of the current fiscal year, which is higher than the growth rate of 3.83 percent of the last fiscal year. At the constant price, Nepal’s GDP will reach Rs 4.105 trillion.

The projection made by the government body is way higher than the forecast made by the international organizations. The International Monetary Fund has estimated Nepal’s growth rate for the current fiscal year at 4.1 percent while the World Bank and Asian Development Bank have anticipated the figure at 3.9 percent.

The primary sector that includes agriculture, forest, fisheries and mines is expected to contribute 24.5 percent to the country’s GDP. The sector’s growth compared to the fiscal year 2020/21 is expected to remain at 2.44 percent at the constant price.

Likewise, the secondary sector that includes manufacturing, electricity and gas, water supply and construction will be contributing 13.7 percent to the country’s GDP. The growth rate of the secondary sector is estimated to remain at 10.29 percent.

Similarly, the tertiary sector that incorporates wholesale and retail businesses, resident and food services, transport, communication, storage service, financial intermediaries and general administration, among others, will be contributing 61.8 percent to the GDP. The service sector is expected to grow by 5.93 percent at the constant price.