Gandaki likely to record over 7 percent growth rateAn increase in agricultural production due to favourable weather, faster pace of reconstruction works and investment of remitted funds in the productive sector have resulted in the growth in the Gross Domestic Product.
The Central Bureau of Statistics estimates in its Provincial National Accounts 2019 that Gandaki province will record a Gross Domestic Product growth rate of 7.06 percent, one of the highest among the country’s seven provinces, by the end of the current fiscal year.
An increase in agricultural production due to favourable weather, faster pace of reconstruction works and investment of remitted funds in the productive sector have resulted in the growth in the Gross Domestic Product.
It is estimated that a rise in the harvest of major crops—paddy, wheat and maize—led to the growth in the gross value added in the agriculture sector.
Unveiling the statistics on Thursday, the Central Bureau of Statistics stated that agricultural commercialisation, political stability and a decline in strikes also helped to push up the Gross Domestic Product growth rate.
“The Gross Domestic Product growth rate was calculated at 7.06 percent considering the data of six to nine months from economic sectors in the province,’ said Abdesh Kumar Shukla, statistics officer at the bureau.
“The agricultural sector contributed 29.94 percent and non-agricultural sectors contributed 7.0.06 percent to the Gross Domestic Product,” said Shukla.
The Gross Domestic Product contribution of the construction sector was estimated at 11.41 percent, retail and wholesale markets at 7.99 percent, hotels and restaurants at 3.89 percent, financial intermediaries at 5.23 percent, education at 7.27 percent, health at 7.74 percent, and real estate and commercial services at 7.26 percent.
As per current consumer prices, the Gross Domestic Product has been recorded at Rs288.20 billion and the per capita contribution to the Gross Domestic Product in Gandaki province has been calculated as $948. The bureau has estimated an inflation rate of 6.35 percent.
According to the bureau, agriculture, forest, fisheries and mines have contributed and estimated 31 percent to the total Gross Domestic Product in the current fiscal year.
According to Giridhari Sharma, vice-president of the Province Policy and Planning Commission, the economic indicators will not rise if the focus is not shifted to large-scale production.
“Gandaki province is dominated by the service sector, and that alone will not increase economic activities,” said Sharma.
“The focus and investments must be channeled to the productive sector.”