Gandaki Province projected to record highest economic growth

The economic growth rate is estimated to be highest in Gandaki Province and lowest in the Bagmati, according to a report of the ongoing fiscal year unveiled by the National Statistics Office.

In the report unveiled on Tuesday, the Gandaki Province is estimated to achieve 3.3 per cent economic growth in the upcoming fiscal year 2023/24. Likewise, Bagmati Province is likely to record 1.4 per cent economic growth.

The economic growth rate predicted for the Lumbini Province is 2.1 per cent, 2 per cent for the Koshi Province and 1.9 per cent for the Karnali Province. Similarly, economic growth rate estimated for the Sudurpaschim Province is 1.8 per cent, 1.7 per cent for Madhesh Province and 1.4 per cent for Bagmati Province. On average, the economic growth could not go up by more than 1.86 per cent. The Office already unveiled that the Nepal Gross Domestic Product (GDP) would reach Rs 4.69 trillion at general price and Rs 5.38 trillion at consumer price in the upcoming fiscal year.

The Bagmati Province is estimated to contribute 36.8 per cent of the total GDP which is Rs 1.98 trillion, becoming the highest contributor while the Karnali Province is predicted to contribute 4.1 per cent which is Rs 221 billion. The Office said that the per capita income (average annual income of a person) of a Nepali has reached Rs 182,683 (USD 1,399). Nepal’s gross domestic product per capita for the fiscal year 2022/23 was USD 1,399, and the gross national production per capita USD 1,410, according to the national report of the National Accounts of Nepal.

Province-wise, Bagmati Province has topped per capita income (PCI) being at USD 2,097, and Madhes Province is at the bottom with USD 875. PCI in Gandaki Province was USD 1,492, USD 1,299 in Koshi, USD 1,126 in Lumbini, USD 1,063 in Sudurpaschim and USD 997 in Karnali. The country’s gross fixed capital performance is projected to reach over Rs 1,356, which is 25.21 per cent of GDP ratio. Similarly, final consumption expenditure is estimated to be 93.59 per cent equivalent to GDP ratio, reaching over Rs 5,036 billion. Nepal’s share of goods and service exports is 7.15 percent equivalent to GDP ratio.

This year, over Rs 385 billion worth of goods and services is expected to export. Import of goods and services is 36.5 per cent equivalent to GDP ratio. This year, the country is expected to import goods and services worth more than Rs 1,964 billion. Also, gross national saving is 31.66 per cent equivalent to GDP ratio. Remittance ratio in GDP is estimated to be 22.89 per cent equivalent.

Agriculture is estimated to contribute a large portion to GDP the current FY. Last year, agriculture contributed 24.67 per cent of its share to GDP. However, the figure is projected to drop to 24.12 per cent this year.