Boost in agriculture and tourism sectors offsets negative growth of trade, manufacturing, construction and mines
KATHMANDU, July 16: Nepal’s economy is estimated to have grown by a mere 2.2 percent in the third quarter of the fiscal year 2023/24, which ended on Monday.
According to the National Statistics Office (NSO), the economic growth rate slowed during mid-February and mid-April 2023. It was attributed to negative growth of sectors including trade, manufacturing, construction and mines during the review period.
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However, the increased yield in agriculture and tourism sectors contributed to a positive growth rate in the national economy. The records with the NSO show that there was an impressive growth in production of wheat, fruits and cash crops including potato. Likewise, the hospitality business also witnessed a boom due to an increased inflow of tourists.
In the review period, trade and commerce had a growth rate of negative 2.7 percent. The sector contributes 14 percent to the national economy.
Likewise, the construction sector had a growth rate of negative 11 percent, while manufacturing, and mines and extraction were also down by two percent and 4.8 percent, respectively.
Electricity and gas related activities grew by 37.1 percent, the highest of all. Residents and food services grew 19.1 percent and the transport and storage sector grew 15 percent. Similarly, art and entertainment achieved growth of 8.3 percent and finance and insurance sectors achieved a growth of 6.1 percent.
