Nepal’s economy is projected to grow at 3.85 percent in the current fiscal year BS 2082/83, down from 4.43 percent recorded in the previous fiscal year.
According to the Economic Survey of the Fiscal Year 2082/83 BS presented by Finance Minister Dr. Swarnim Wagle at the House of Representatives on Wednesday.
The survey estimates the size of Nepal’s economy at Rs 6.6 trillion while per capita gross national income would reach 1,535 US dollars.
The survey also has shown Nepal’s external sector is strengthening, inflation is under control and remarkable increase in remittance however seem yet big challenges of negative indication in capital expenditure, trade deficit, expansion of public debt and the sluggish loan disbursement in private sector.
According to the survey report, the government mobilized around Rs 300 billion public debt through internal and external loans while fiscal balance deficit recorded Rs 59 billion whereas Rs 9 billion stood primary balance deficit during the period.
The public debt has reached Rs 2.878 trillion till mid-March, which is equivalent to 43.6 per cent of the GDP. The trade deficit increased by 11.2 per cent and reached Rs 1.098 trillion.
Similarly, remittance inflow increased by 37.7 per cent and reached Rs 1.450 trillion while the balance of payments position is at a surplus of Rs 658 billion and the current account is at the surplus of Rs 553 billion.
The GDP’s agriculture part comes to 24 percent while the non-agriculture sector accounts for 76 percent. The growth rate of the agriculture sector is estimated at 1.58 percent this year whereas the non-agriculture sector is projected to grow at 4.54 percent.
Likewise, foreign exchange reserves stood at Rs 3.414 billion adding the sluggish pictures in private investment and economic activities.
The conflict scene in West Asia along with globally rising prices including petroleum, disruption in supply chain has affected the stabilization of monetary policy.
