Loading...

Nepal's economy to grow by 6.81pc this fiscal year

Published: April 27, 2019 15:26:33 | Updated: May 01, 2019 16:46:04


File photo (Collected)

Nepal's economy is projected to grow by 6.81 per cent in the current fiscal year (FY) that concludes in mid-July, the country’s Central Bureau of Statistics (CBS) has said.

The CBS predicted the strong growth as the Himalayan country is witnessing over six per cent growth rate three years in a row.

Nepali economy grew by 7.74 per cent in fiscal year 2016-17, the highest growth since fiscal year 1993-94, reports Xinhua.

In the last FY 2017-18, the Nepali economy grew by 6.3 per cent as per the revised estimate, according to CBS.

Ganesh Acharya, the director at the CBS, said on Friday that the projected growth rate for this fiscal is still impressive despite failing to meet the set target which stands at eight per cent.

"Rarely in the past has Nepal seen growth over six percent three years in row," Acharya said.

Economic growth in the last three years coincides with the improved political and economic situation as the country achieved political stability after a prolonged political transition.

The projected growth in the current fiscal year is due to good agriculture production aided by favourable climate, good performance of the energy and industrial sector and equally impressive growth in the service sector, according to CBS.

The agriculture sector, which contributes 26.5 per cent to the national economy, is projected to grow by an impressive 5.1 per cent against last fiscal's growth rate of 2.72 per cent.

There has been healthy growth in the production of paddy, vegetables, wheat, maize and potato, according to the CBS, the main government body that deals with the country's vital statistics.

The government body produces the country's national account projecting economic forecasts every year.

The performance of manufacturing, construction, electricity, and water sectors has also remained impressive with these sectors expected to grow by 8.1 per cent on an average.

The service sector, represented by wholesale and retail, hotel and restaurant, financial intermediary, real estate, health, education, public administration and social and personal services, is projected to see an impressive growth of 7.29 per cent this fiscal year, according to the CBS.

Share if you like