(It was published on Karobar Daily; Baishakh 18, 2077)
As the economy shrinks due to coronavirus (Covid-19), Nepal's economic growth rate will be limited to 2.27 percent in the current fiscal year. The Central Bureau of Statistics (CBS) on Wednesday projected a GDP growth rate of 2.27 percent at basic prices. Despite an increase of 6.75 percent in the last fiscal year and 6.35 percent in the previous fiscal year, the growth rate in the current fiscal year has been weakened by the Corona virus epidemic. The department has stated that it is limited.
The government had set a target
of 8.5 percent economic growth through the current fiscal year's budget. From
the very beginning, the government has been criticized for not working to meet
the target. Yuvaraj Khatiwada had been estimating growth above 6 percent even
though it did not meet the target. But the recent Corona epidemic has put a
brake on the 6 percent economic growth target of three years. According to the
data made public by the department, the size of Nepal's economy at current
prices has reached Rs 37.67 trillion in GDP.
Last fiscal year, the total
economy was Rs. 34.58 trillion. The department has claimed that there has been
sluggishness in all the 15 areas of economic growth. According to the data
released by the department, the growth rate of the primary sector, which
accounts for 28.2 percent of the GDP, will be lower than last year, which has a
direct impact on the economy. These include agriculture and forestry, fisheries
and mining. However, the share of agriculture sector in the last Fiscal Year
075-076 was 26.98 percent of GDP and it is expected to increase to 27.08
percent in the current Fiscal Year. The share of service sector will increase
from 57.71 percent to 58.08 percent.
The department has estimated that
the growth rate of this sector will be 3.36 percent in the current year.
Similarly, the service sector, which accounts for 58.08 percent of GDP, is
projected to grow at 1.99 percent. Similarly, the growth rate of industry,
construction and gas and water sector, which accounted for 13.72 percent, is
expected to increase by 3.36 percent. The growth rate of the service sector,
which contributed 58.08 percent, is expected to increase by only 1.99 percent in
the current fiscal year. The financial intermediaries sector is projected to
grow by 5.15 percent.
The department also estimates
that real estate, retaining sector will increase by 3.25 per cent, public
administration and defense by 5.91 per cent, education by 4.8 per cent, health
and social work by 7 per cent. The department has projected gross domestic
product (GDP) based on the impact of the corona. According to the department,
priority sectors include agriculture, forestry, fisheries, electricity and gas
and water, and financial intermediation, real estate and business services, as
well as public administration and defense, education services, health and
social services. There are other community social and personal services.
The contribution of mining and
quarrying, industry, construction, wholesale and retail trade will decrease
this year. According to the department, the impact of Kovid-19 will be 16.30
percent decline in the hotel and restaurant sector. The total inflation rate is
expected to decline in 11 sectors as compared to the previous fiscal year.
Similarly, the transport, communication and storage sector will decline by 2.45
percent in the past one month due to the impact on transport and other
activities. The contraction was 2.27 percent in the industrial sector A
reduction of issue Thursday. According to the department, the decline in
construction activity will be 0.31 percent and the mining and quarrying sector
will also be 0.69 percent. According to the department, the per capita income
of Nepalis has increased slightly to Rs. 126,018 or US dollor1,085
this year.
In the last fiscal year, the per capita income was
1 lakh 18 thousand 623 rupees
or 1039 US dollars. According
to data released by the Central Statistics Office, the current fiscal year has
increased by 46 dollar to 1,085 dollar. Accordingly, the average annual income of a Nepali
has reached one lakh 32 thousand 592 rupees. The government has set a target of raising
the income of every Nepali to 12,000 dollar in the next 25 years. At current prices, total production is Rs 5,093 billion at the basic
price and at current prices, it is Rs 1,743 billion at the average consumer price. At current
prices, gross domestic product (GDP) at basic prices is Rs. 329 billion. The department has stated that the total
fixed capital formation at current prices is Rs 1.06 trillion. At current prices, final consumption
expenditure stands at Rs 3.05 trillion (81.90 per cent of GDP). At current prices, net exports of
goods and services stood at Rs 1.27 trillion.
