Economic growth drops to six-year low
KATHMANDU, APR 06:
Delayed budget and poor agriculture performance‚ coupled with slowdown in construction‚ have squeezed the economic growth to a six-year low of 3.56 per cent at basic price for the fiscal 2012-13‚ according to primary estimation.
According to the Central Bureau of Statistics’ projection‚ besides poor agriculture production‚ delayed budget has curtailed public spending in key areas like health‚ education and social sector and failed to create demand‚ reducing the growth rate.
The decline in agriculture growth rate — a key contributor to the gross domestic product — has pulled the overall economic growth rate down to six-year low‚ the data revealed‚ adding that agriculture is expected to grow by a mere 1.21 per cent in the current fiscal year against last fiscal year’s 4.94 per cent growth.
The low production of key crops like paddy‚ maize and wheat due to delayed monsoon and lack of fertiliser on time have hit the agriculture output‚ according to the director general of CBS Uttam Narayan Malla. However‚ the non-agriculture sector is expected to record a marginal growth compared to last fiscal year. “In the current fiscal‚ the non-agriculture sector is expected to grow by 4.98 per cent compared to 4.15 per cent in the last fiscal‚” he added.
Agriculture and non-agriculture growth both have not been satisfactory‚ said Deputy Director General of the CBS‚ Suman Aryal. “However‚ consumption-led imports have pushed the wholesale and retail trade up‚ which is expected to grow by 9.54 per cent‚ the highest among all the sectors of the GDP‚” he said‚ adding that the manufacturing sector has‚ however‚ performed poorly as always. “Manufacturing sector is expected to grow by a meager 1.85 per cent in the current fiscal year compared to 3.63 per cent a fiscal year ago‚” Aryal added.
Among the components of the GDP‚ eight have performed poorly‚ while remaining seven‚ including mining and quarrying‚ construction‚ wholesale and retail trade‚ hotels and restaurants‚ transport‚ storage and communications‚ financial intermediation and other community‚ social and personal services activities are expected to post growth in the current fiscal year compared to last fiscal year.
The consumption‚ on the other hand‚ has eaten up the national savings. “The national savings is expected to be at 9.34 per cent of the total GDP‚ which is not encouraging‚” Aryal said‚ adding that the low savings will create resource gap. “The consumption at Rs 1‚542.33 billion is projected to be 90.66 per cent of the total GDP.” The CBS has also estimated that the country’s GDP in monetary terms stands at Rs 1‚701.19 billion and the economy could witness Rs 642.91 billion capital formations‚ whereas a total of Rs 484.05 billion is projected as trade deficit of goods and services in the fiscal year 2012-13.
Per capita income up
A Nepali earns Rs 62‚510 at an average per year‚ according to the CBS estimation for the current fiscal. “The per capita GDP has increased to Rs 62‚510 at current price in the current fiscal year 2012-13‚” it states‚ adding that it is a growth of 9.28 per cent from last fiscal year’s Rs 57‚202. Per capita GDP is an average income per person per year within the internal sources. However‚ including the external resources like remittance‚ the income increases to Rs 80‚685‚ which is an increment of 9.78 per cent on the last fiscal year’s per capita Gross National Disposable Income of Rs 73‚497. GNDI is the wealth generated by nationals plus net external income sources from out of the country.
Delayed budget and poor agriculture performance‚ coupled with slowdown in construction‚ have squeezed the economic growth to a six-year low of 3.56 per cent at basic price for the fiscal 2012-13‚ according to primary estimation.
According to the Central Bureau of Statistics’ projection‚ besides poor agriculture production‚ delayed budget has curtailed public spending in key areas like health‚ education and social sector and failed to create demand‚ reducing the growth rate.
The decline in agriculture growth rate — a key contributor to the gross domestic product — has pulled the overall economic growth rate down to six-year low‚ the data revealed‚ adding that agriculture is expected to grow by a mere 1.21 per cent in the current fiscal year against last fiscal year’s 4.94 per cent growth.
The low production of key crops like paddy‚ maize and wheat due to delayed monsoon and lack of fertiliser on time have hit the agriculture output‚ according to the director general of CBS Uttam Narayan Malla. However‚ the non-agriculture sector is expected to record a marginal growth compared to last fiscal year. “In the current fiscal‚ the non-agriculture sector is expected to grow by 4.98 per cent compared to 4.15 per cent in the last fiscal‚” he added.
Agriculture and non-agriculture growth both have not been satisfactory‚ said Deputy Director General of the CBS‚ Suman Aryal. “However‚ consumption-led imports have pushed the wholesale and retail trade up‚ which is expected to grow by 9.54 per cent‚ the highest among all the sectors of the GDP‚” he said‚ adding that the manufacturing sector has‚ however‚ performed poorly as always. “Manufacturing sector is expected to grow by a meager 1.85 per cent in the current fiscal year compared to 3.63 per cent a fiscal year ago‚” Aryal added.
Among the components of the GDP‚ eight have performed poorly‚ while remaining seven‚ including mining and quarrying‚ construction‚ wholesale and retail trade‚ hotels and restaurants‚ transport‚ storage and communications‚ financial intermediation and other community‚ social and personal services activities are expected to post growth in the current fiscal year compared to last fiscal year.
The consumption‚ on the other hand‚ has eaten up the national savings. “The national savings is expected to be at 9.34 per cent of the total GDP‚ which is not encouraging‚” Aryal said‚ adding that the low savings will create resource gap. “The consumption at Rs 1‚542.33 billion is projected to be 90.66 per cent of the total GDP.” The CBS has also estimated that the country’s GDP in monetary terms stands at Rs 1‚701.19 billion and the economy could witness Rs 642.91 billion capital formations‚ whereas a total of Rs 484.05 billion is projected as trade deficit of goods and services in the fiscal year 2012-13.
Per capita income up
A Nepali earns Rs 62‚510 at an average per year‚ according to the CBS estimation for the current fiscal. “The per capita GDP has increased to Rs 62‚510 at current price in the current fiscal year 2012-13‚” it states‚ adding that it is a growth of 9.28 per cent from last fiscal year’s Rs 57‚202. Per capita GDP is an average income per person per year within the internal sources. However‚ including the external resources like remittance‚ the income increases to Rs 80‚685‚ which is an increment of 9.78 per cent on the last fiscal year’s per capita Gross National Disposable Income of Rs 73‚497. GNDI is the wealth generated by nationals plus net external income sources from out of the country.
Source: www.sharesansar.com
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