Sudurpaschim to achieve highest growth among states

Kathmandu, May 12

The Sudurpaschim State is likely to achieve the highest economic growth rate in the current fiscal year 2019/20.

The far-western State in the country will witness 4.08 per cent growth in the Gross Domestic Product (GDP) – highest among the seven states, according to the primary estimates of the Central Bureau of Statistics (CBS).

National economic growth rate is projected at 2.28 per cent against the earlier government forecast of 8.5 per cent.

The size of state's economy will reach Rs 272 billion from last year's Rs 243 billion which has increased its share in the national economy as well. It will have 7.21 per cent share in the national economy of Rs 3.76 trillion, estimated the statistical body under the National Planning Commission.

Last year, Sudurpaschim witnessed 6.90 per cent growth rate. Agriculture is the primary contributor to the economy in the state.

Bagmati will have the lowest growth rate at 1.23 per cent in the current fiscal. The state having the federal capital and the only international airport in the country will have Rs 1.35 trillion economy this year. Last year, it witnessed 6.40 per cent economic growth with highest contribution from retail trading – 21.93 per cent.

The CBS said that the large urban centres, large population and large businesses contributed to the growing retail trade in the state.

Likewise, growth rate of State 1 is forecast to be 3.41 per cent. The Rs 544 billion economy of the state will reach Rs 596 billion this year with the largest contribution – 37.14 per cent – from agriculture. Last year, the eastern state achieved the growth of 7.40 per cent.

The growth rates of State 2, Gandaki, State 5 and Karnali will be 2.28 per cent, 2.68 per cent, 2 per cent and 3.56 per cent respectively.

In the last fiscal, State 2 had the highest growth rate – 8.12 per cent – and Bagmati the lowest – 6.4 per cent.

As per the CBS estimates, State 2 economy will reach Rs 519 billion this year from Rs 471 billion of the last fiscal with 40 per cent contribution from agriculture.

Gandaki's economy will grow to Rs 335 billion from Rs 308 billion last year with 29.9 per cent contribution of agriculture.

Similarly, State 5's economy is likely to reach Rs 534 billion from Rs 491 billion. Agriculture is the largest contributor – 33.86 per cent – in the state.

Karnali is the smallest of all the state economies with just Rs 161 billion contribution to the national economy. The largest economic sector in the province is agriculture – 34.19 per cent.

Bagmati largest contributor to GDP

Bagmati State is the largest contributor to the national GDP with 35.84 per cent share.

According to CBS estimates, State 1 will have 15.82 per cent contribution to the national economy while State 5's share will be 14.18 per cent. Likewise, State 2 will have 13.78 per cent, Gandaki 8.9 per cent, Sudurpaschim 7.21 per cent and Karnali 4.27 per cent.

There are no significant changes in the structure of provincial shares to the national economy as compared to the previous year.

The CBS has made the projects on the basis of the economic activities in the first 6-8 months of the current fiscal year and the impact of the measures adopted to control the spread of coronavirus pandemic.

Published in The Rising Nepal daily on 13 May 2020.