All seven provinces’ economic growth will slow this year

KATHMANDU: According to projections, the current fiscal year will see the least economic growth in Bagmati Province.

Bagmati Province will only grow by 1.4 percent in the fiscal year 2022–2023, according to data released by the National Statistics Office (NSO). The province experienced growth of 6.3 percent during the previous fiscal year.

The growth of the province that makes the largest contribution to the national gross domestic product (GDP) has been impacted as the nation struggles with the economic slowdown. According to the NSO, the country’s GDP will be Rs 5.381 trillion based on consumer prices, while Bagmati Province’s GDP will be Rs 1.981 trillion.

The decline in wholesale and retail business transactions, as well as activities related to construction, has been blamed for the province’s declining growth rate, which is where the nation’s capital is located. Even in the total GDP, these industries account for a larger portion.

The highest growth rate of any province in the current fiscal year is predicted for the Gandaki Province, which is expected to increase by 3.3 percent. At current prices, the province’s GDP will total Rs 482 billion. Gandaki Province saw growth of 6.4 percent in the fiscal year 2021/22.

Similar to Koshi Province, growth will be limited to 2%, down from 5% in the previous fiscal year. The Koshi Province’s economy will continue to be worth exactly Rs 849.65 billion.

Madhesh Province’s growth rate will decrease from 4.6 percent to 1.7 percent. The Madhesh Province’s economy will have a value of Rs 707.51 billion.

The growth rate in Lumbini Province will be 21%, down from 5%. An estimated 762.97 billion rupees make up the GDP.

The Sudurpaschim Province’s economic growth rate will also drop from 4 to 1 percent. The GDP will continue to be at Rs. 376.33 billion.

The least economically significant Karnali Province will grow by 1.9 percent, down from 5.3 percent. The province’s GDP will total Rs 221.53 trillion.

According to the NSO, the country’s GDP will grow by only 2.16% this year, far less than the government’s target of 8%. Even so, it is less than the average rate of 4.1 percent that the World Bank and the Asian Development Bank estimate.