Nepal’s economy is projected to grow by 6.81 per cent in the current fiscal year that concludes in mid-July, as the Himalayan country is witnessing over six per cent growth rate three years in a row, Nepal’s Central Bureau of Statistics (CBS) said on Friday.
Nepali economy grew by 7.74 per cent in fiscal year 2016-17, the highest growth since fiscal year 1993-94.
In the last fiscal year 2017-18, the Nepali economy grew by 6.3 per cent as per the revised estimate, according to CBS, the main government body that deals with the country’s vital statistics. The CBS produces the country’s national account projecting economic forecasts every year.
Ganesh Acharya, the director at the CBS told Xinhua that the projected growth rate for this fiscal was still impressive despite failing to meet the set target which stood at eight per cent. ‘Rarely in the past has Nepal seen growth over six per cent three years in row,’ he said.
Economic growth in the last three years coincided with the improved political and economic situation as the Himalayan country achieved political stability after a prolonged political transition.
The projected strong 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 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.
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