State Economy To Shrink Due To Coronavirus
May 13, 2020 | Investopaper
The economic growth rate of the country has been affected by the decline in economic activity due to the corona virus infection. The gross domestic product (GDP) growth rate of the provinces is also expected to decline. The projection of state-level economic growth released by the Central Bureau Of Statistics Office on Tuesday shows that the economic growth of all the states in the current fiscal year 2076/77 will shrink compared to the previous year. According to the department, the lowest economic growth rate in the current fiscal year will be 1.23 percent in Bagmati and the highest in the far west will be 4.8 percent.
With the exception of Bagmati, the contribution of agriculture to the GDP is highest in all the states. The contribution of mining sector is least in all the states. Bagmati accounts for 35.84 percent of the country’s gross domestic product. In Bagmati, the contribution of agriculture sector is less while the share of wholesale and retail trade is more. Therefore, it is seen that the economic growth rate will be the lowest when the business is closed due to lockdown.
“Of the estimated Rs 3.67 trillion in GDP, Bagmati will contribute 35.84 per cent,” the report said. Last year, it was 36.35 percent. The gross domestic product of Bagmati is estimated to be Rs 1.35 trillion in consumer value.
The department has estimated that the gross domestic product of Province No. 1 will be Rs. 596 billion in consumer price this year. Last year, state 1 at the national level occupied 15.73 percent share. This year it is estimated to be 15.82 percent share. The highest contribution in the state 1 is 37.14 percent of the agricultural sector. The lowest contribution is 0.47 percent of the mining sector, according to the department.
According to the Department of Statistics, the agriculture sector accounts for 40 percent of the GDP of State-2 and the mining and excavation sector accounts for the lowest 0.57 percent. The department estimates that the consumer price of Gandaki will be Rs 335 billion this year. It was Rs. 308 billion in the previous year. Gandaki, which contributed 8.93 percent to the national economy in the last fiscal year, will contribute 8.90 percent this year. Gandaki has the highest contribution of 29.9 percent to the GDP, while the mining sector has the lowest contribution of 0.75 percent.
The production value of the GDP of Province No. 5 is Rs. 534 billion. The state 5, which accounted for 14.18 percent of the national economy in the last fiscal year, will contribute 14.18 percent this year. Agriculture contributes 33.86 percent to the state’s GDP, while mining contributes the least to 0.62 percent.
The GDP of Karnali will be Rs 161 billion in consumer price this fiscal year. Last year, it was Rs 144 billion. Karnali, which contributed 4.16 percent to the national economy last fiscal year, will contribute 4.27 percent in the current fiscal year. The highest contribution in Karnali is 34.19 percent from the agriculture sector while the lowest contribution from the mining sector is 0.50 percent.
Central Department of Statistics Office had already estimated that Nepal’s economic growth rate will be only 2.28 percent in the current fiscal year due to Corona.
