April 29: The size of Nepal's economy (Gross Domestic Product) is projected to reach Rs 4851 billion by the end of the current fiscal year (FY), according to the Central Bureau of Statistics (CBS). This is based on consumer price estimates. As per the base rate, the size of the economy this year will be equal to Rs 4155 billion.

 The department estimates that the GDP will grow by 5.84 on the basis of consumer prices. The fiscal Year 2067/68 is considered the base year for calculating the growth rate of GDP.

The department's estimate is more than the 4.1 percent projected by the International Monetary Fund two days ago. However, this is less than the government's target of 7 percent growth in the replacement budget.

According to a projection released by the World Bank last year, Nepal's economy was set to grow by 3.7 percent this year. The Asian Development Bank has projected a growth rate of 3.9 percent.

The department estimated the economic growth rate for 6 to 9 months of the current fiscal year based on the data and information related to the economic sector, officials from the department said during a press conference held on Thursday.

With only three months left for the fiscal year to end with no major factors affecting GDP and the impact of COVID-19 also declining, this estimate will be prove to be correct, said Nevin Lal Shrestha, Director General of the bureau.

The CBS informed that the contribution of service and secondary sector to the GDP has increased in the current fiscal year. However, the contribution of the primary sector has declined. According to the bureau, the overall industrial sector has been divided into three groups-primary, secondary and service sector.

Primary sectors include agro-forestry, fisheries, mining and excavation.

"The primary sector is projected to contribute 24.5 percent to the current year's GDP," the department said. Due to the decline in the production of paddy in the current fiscal year, the growth rate of this sector has been lower than that of the previous fiscal year.

The CBS has estimated that the contribution of the second sector to the GDP will be 13.7 percent in the current fiscal year.

The second area includes industry, electricity and gas, water supply and construction. The service sector includes wholesale and retail trade, housing and food services, transportation communication and storage, financial, real estate business, professional and administrative services, public administration and defense, education, health and other services. It is estimated that this sector has contributed 61.8 percent to the GDP in the current fiscal year.

The bureau estimates that imports will reach Rs 2 trillion and exports Rs 320 billion this year. The per capita GDP is expected to be USD 1,372. The average per capita income of Nepalis is estimated to be 1,381 dollars. The department estimates the average per capita income for the previous year was 1,246. This year, total household savings will be 9.3 percent of the GDP.