Gandaki Province Records Highest Economic Growth: NSO

May 23, 2024 | Investopaper

Gandaki Province stands out among Nepal’s seven provinces with the highest economic growth rate, according to the Provincial Gross Domestic Product (GDP) report by the National Statistics Office. The report estimates Gandaki’s economic growth rate at 4.23 percent for the current fiscal year, with Lumbini Province following closely behind. In terms of consumer prices, Gandaki maintains the lead with an estimated growth rate of 4.55 percent.

The report highlights Gandaki Province’s significant contribution to Nepal’s overall GDP, accounting for 8.9 percent last year and expected to rise to 9 percent this year. Agriculture remains a key sector contributing to the GDP of Gandaki province.

Bagmati Province emerges as the wealthiest among the provinces, boasting a per capita GDP of $2,485, while Gandaki follows with $1,557. Agriculture dominates economic activity across provinces except in Bagmati, where wholesale and retail trade flourish due to urbanization and increased national-level business transactions.

Looking ahead, the National Statistics Office predicts Nepal’s economic growth rate at 3.54 percent for the current fiscal year, falling short of government targets. Projections by international bodies like the World Bank and Asian Development Bank align closely with this estimate. Despite ambitious targets set by the government, achieving sustained growth remains a complex endeavor requiring careful economic management and adaptation to changing global and domestic conditions.