Agriculture growth 14 yr high
By Prem Khanal
Propelled by the a strong growth in both the agriculture and non-agriculture sectors, the long-ailing economy has bounced back to record 5.56 percent growth in the current fiscal year, highest economic expansion in last the seven years. With the growth, the total size of Nepali economy in producers’ price has scaled up to Rs 828.8 billion (US$12.80 billion) while the per capita income has also increased by around 11 percent to Rs 30,361 per year (470 US$). However, with the creeping inflation, which is around 9 percent, the real purchasing capacity of Nepali consumers is estimated to grow marginally in the year. According to a preliminary estimate of national accounts prepared by the Central Bureau of Statistics (CBS), agriculture sector, which contributes 32 percent to national economy, grew by 5.65 percent while the growth of non-agriculture sector was around 5.52 percent.
Finance minister Dr Ran Sharan Mahat said that the growth which has been encouraging, was made possible due to prudent and tactful management of the economy even at the most difficult period. The big push for this year’s growth came from the long-yeaning agriculture sector, which witnessed a record 5.65 percent growth in 14 years, thanks mainly to almost 17 percent growth in production of paddy, the heavyweight of the agricultural sector. Likewise, the wholesale and retail sector that holds the second largest contribution to national economy after agriculture expanded by 6.43 percent whereas its expansion last year was negative. Increasing purchasing power of consumers mainly due to a double-digit growth in remittance inflow fueled the growth.
Similarly, despite a strong growth in communication sector, the lengthy transport disturbances took a toll on the sector, resulting in a slowest growth of 6.6 percent in transport and communication sector, the third largest contributor to national output. The most impressive growth came from the financial intermediation sector, which mainly represents banking and insurance businesses. According to CBS estimate, annual growth of the sector recorded at 13.8 percent from last year’s around 9 percent.
Robust rebound in tourist arrivals also propped up the long-ailing hotels and restaurants sector to grow by 7.5 percent, the highest growth in years. Likewise, construction sector that represents nearly 7 percent in the overall economy also showed a moderate growth of 4 percent compared to 2.5 percent last year. However, the most pessimistic development came from the manufacturing sector, which recorded a nominal growth of 0.18 percent, lowest since it recorded negative in 2001/02 mainly due to deteriorating industrial relations and political uncertainty.
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20 responses to “Nepal’s Per Capita Is $470 (Which Still Looks Like a Misprint)”
And let’s all not forget that this is NOT because of the government and politics, it’s DESPITE of the government and politics .. politics of the type being seen now that is bound to pull us all down. Private sector and people should tighten the pressure so growth can continue. Accountability on those who claim to be in politics should be increased.
rdr – I agree with you. whatever economic growth that has been achieved has been done despite the government and it’s negative politics. I really despise that bearded idiot Ram Sharan Mahat taking credit for this growth because of “prudent and tactful management of the economy”! What a cretin!
Hambug. All lies weaved together by the likes of Mahat. It’s all bullcrap. Is it only me or does others also feel we’re worse off and ready to go down the drain. Maybe Mahat added all the UN aid for the peace process in the income side as well.
And yes, if there was any positive it’s due to the people and the private sector without govt. – IF any growth was achieved its hats off to individual and private enterprise – the only way ahead – I hope these jerks in govt. get the picture. Now all they have to do is ensure that goods and services are delivered efficiently and timely – I hope thay can at least manage that because the economy is well beyond their competence level.
Well just reaffirms the fact that less the govt. the better for the economy. Free enterprise is the way ahead. We have had no real governance in the past years and we are doing better (according to govt. stats to boot) – maybe we should just sack the govt. and save all the wasted expense upkeeping these useless pieces of furniture.
i think it looks less, there are many economic activities that govt. is not able to record.
………………..export, import, remittance, tourism income are under valued.
i do not believe in 99% of govt. records.
to work with foreign companies we have to pay them, but it is not possible to send them money legally, so business has to adupt in these situations.
nepal has been running by it people, not by the govt.
the govt, shows their face when it is time to cut harvest to collect their ransom.
nepalese are surviver. (we have still to see opportunist prachanda bahun who wants to make nepal his private property)
if leaders, bureaucrats donot know how to make policies, rules then why dont they copy from let’s say switzerland.
this is less for the soaring inflation. By only this percentage of economics growth we cannot compete with other country. a massive or fast economics growth is needed to sustain the livelihood of the Nepali People.
Well, it seem quite less likely to me. since most of the ppl in nepal are still have to fight for the daily meals. I seriously hope this report has been done all over nepal rather than just concentrating on the main cities.
I think few things needs to be considered in this figure. This year Nepali currency was getting stronger against dollar. The differences between Rs. 30,000 @ $1= Rs 75 vs Rs 30,000 @ $1= Rs 63 should also be considered…
Ram Prasad
I think few things needs to be considered in this figure. This year Nepali currency was getting stronger against dollar. The differences between Rs. 30,000 @ $1= Rs 75 vs Rs 30,000 @ $1= Rs 63 should also be considered…
Hari Prasad
Really?? Despite all those mess we have been gone through and despite all those strikes?? Really??
What would we have achieved had we not suffered the all those chaos?? Isn’t it time now to consolidate our belief and trust on private sector ?? Even with the gigantic obstacles they can deliver the results, imagine the results without .
Good on ya !!
We just look upon other developed countries and keep saying that we are poor. But that ain’t the fact because Nepal is already into the verge of economic boom and that’s the truth.
This above 5% economic boom was possible due to approximate end of the decade long war. Now that we are in the process of institutionalizing peace, we can expect a continuity to this miracle.
Once peace becomes our thing, there are things like tourism, useful foreign investment, hydroelectricity and severely other factors that will help it to get it to 8+. And, I am looking forward to that.
I think the percapita income increase due to
1. Our currency apperciation i mean need
less amount(rs) to exchange the us($).
2. High remittence by foreign employment.
3. Nepal is going in peace process.
4. Free in business
5. Satisfactory fiscal and monetary policy by govt etc.
Maybe all those Nepali sex slaves in mumbai are doing very well. ROFL.
I think its due to the remittance that Nepal gets every year and i BELIEVE That most of the nepalese citizens who are now residing in foreign land going to cause a labor defficiency in near future and the situation gets worsened
Whatever may be the cause, it is definitely encouraging!
Well well well. The economical score is great and its definately encouraging. Lets see it in otherwise.
Girija has declared that it was him who made the so called UNdemocratic Maoists, Democratic and brought them into peace system. This implies the increasing poverty, falling economy prior to the present economy rise was purely due to the earlier maoist insurgency and the transformation of Maoist to democratic Maoist has generated this encouraging economic growth. And this is just to show it was achieved only due to the 7 party coalition.
My freinds, believe me there is still the poorer economy rather than what it is documented and preached. This is representative example that anything can be presented in any way and in biased way only to favour some purpose. And I say there are many such phenomenon by which we are behind and beggers for always. Yeah the growth could be only 60% of what is shown (That too could be due to automatic process- by increasing hard works by people to balance daily needs, self-surviving) and the government has stretched it by paper works only to make Maoist responsible for past economic fall.
Let the Economic Commission of UN publish the report and the Development Index be out. Then only we will know the fact. I am gonna wait.
It is reality ?? Nepali’s per capita income is $470 ???
So why still Nepali are so poor ???
Can anyone tell me who was the journalist(?) who on looking at the low Nepal’s Per Capita sais “Which Still Looks Like a Misprint”?