Budget Mid-Year Review Report: Economic growth rate projected to remain 3.5 percent
Summary
The government's mid-year budget review projects Nepal’s economic growth rate to slow to 3.5 percent, citing declines in rice production and construction activity among factors.
Key Points
- The government projects Nepal's economic growth rate to be limited to 3.5 percent in the current fiscal year.
- The decrease in rice production, construction sector slowdown, and decline in real estate transactions contributed to the revised lower growth projection.
- Agricultural value addition growth is expected to be low at 1.36 percent, with an increase in livestock, vegetable, and fruit production but a decrease in rice production.
- The industrial sector value addition is expected to grow by 5.44 percent, supported by energy and construction activities, while the service sector is projected to increase by 3.03 percent.
