Nepal in the News-This year's Economic growth rate will remain only 2.27 percent 😱😱

Nepal in the News-This year's Economic growth will remain only  2.27 percent

KATHMANDU: The country's economy is expected to grow by only 2.27 percent this year as economic activity slows down due to the epidemic of the corona virus.

Economic growth, which had shrunk to 0.2 percent in FY 2072/73 due to the catastrophic earthquake, had slowed down in the following year. The Corona problem, seen five years after the quake, has once again hit the economy hard. When the government made the budget public, it had set a target of 8.5 percent economic growth this year.

According to data released by the Central Statistics Office on Wednesday, the country's economy is projected to grow by only 2.27 percent in basic prices in the current fiscal year. At the same time, the size of the country's economy will reach Rs 329 billion in basic prices and Rs 37.67 billion in consumer prices. "This year's Economic growth rate will remain only  2.27 percent", said Officials.

This is the lowest growth rate in the current fiscal year since the 2072 earthquake. Before the earthquake, the growth rate of the economy was 2.75 percent in 2064-65. The economy grew the most at 7.74 percent in the year following the quake.

The department has projected this data by looking at the economic activities in the last 7 to 9 months of the current fiscal year and estimating the production and activities of goods and services in the coming days. This is not the final figure for the current year. According to the department, the economy expanded by 6.75 percent last year and the economy grew by 6.35 percent in the previous year, 2074-75.

The size of the country's economy will reach Rs 329 billion in basic prices and Rs 37.67 billion in consumer prices, according to the department.

Stating that it is not yet possible to estimate the impact of internal and external efforts of the world to prevent and control Covid 19 in Nepal and around the world, the department said that the hotel and restaurant and international transport sector will be severely affected and other sectors will be regularized from May. Estimated figures have been prepared.

According to the department, the expansion of primary and service sectors in the gross domestic product (GDP) has been good for the last three years while the expansion of the secondary sector has been slow. In the current year, the expansion of these three sectors is estimated to be less than the previous year. The growth rate of agriculture and forestry, fisheries and mining and excavation in the primary sector has declined this year as compared to last year.

The decline in paddy production this year and the disruption to the supply system due to efforts to mitigate the effects of the Covid 19 epidemic have led to lower growth in the sector than last year. This year, the sector is expected to grow by only 2.54 percent. This year, the sector is expected to contribute 28.2 percent to GDP.

The department estimates that the growth rate in the construction, industry and electricity, gas and water sectors, which fall within the second zone, will be 3.36 percent this year. The sector contributes 13.72 percent to the GDP. Despite the expansion in the energy sector, supply and production disruptions due to Corona are expected to affect the sector's growth rate.

The worst affected area is Corona. Wholesale and retail trade, hotels and restaurants, transportation, communications and storage, financial intermediation, real estate, business services, public administration and defense, education, health and other community, social and personal services will grow by only 1.99 percent this year. The estimate is from the department. This sector's contribution to GDP will be 58.08 percent in the current year. Its all the effect of Covid 19

According to the department, agriculture sector will contribute 27.65 percent and non-agriculture sector 72.35 percent to the GDP this year. Similarly, the contribution of industry sector will be 5.09 percent. It is 2.27 percent less than the previous year. The growth rate of the construction sector will also be negative. The contribution of hotels and restaurants is 1.41 percent. This time, the growth rate of the sector will be negative at 16.3 percent. Transport and communication is also seen to be negative by 2.45 percent.

According to the department, per capita income has reached Rs. 126,018 this year. This is equivalent to one thousand 85 US dollars. Similarly, remittances will come to Rs 716 billion and it will be 19.01 percent of GDP, according to the department.


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