Nepal’s economy to grow by 6.81% this fiscal year

KATHMANDU, Nepal's economy is projected to

grow by 6.81 percent in the current fiscal year that concludes in midJuly,

as the Himalayan country is witnessing over six percent growth rate three

years in a row, Nepal's Central Bureau of Statistics (CBS) said on Friday.

Nepali economy grew by 7.74 percent in fiscal year 201617, the highest

growth since fiscal year 199394.

In the last fiscal year 201718, the Nepali economy grew by 6.3 percent 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 is still impressive despite failing to meet the

set target which stands at eight percent. Rarely in the past has Nepal seen

growth over six percent three years in row, he said.

Economic growth in the last three years coincides 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 favorable 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 percent to the national

economy is projected to grow by an impressive 5.1 percent against last

fiscal's growth rate of 2.72 percent. 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 percent 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 percent this fiscal year, according to the CBS.

Source: Bangladesh Sangbad Sangstha (BSS)