Page 68 - MEX-Yearbook-2017

Research Paper & Articles

Macroeconomic
Indicators -
Nepal

In the fiscal year 2016-17, the overall economic is increasing while that of agriculture sector is Food production has increased as a result of
activity of Nepal has been encouraging. Due to decreasing. The share of agriculture and non- favorable monsoon and easy availability of
a plethora of reasons including the favorable agriculture sectors to GDP are estimated to remain agricultural inputs including chemical fertilizer.
monsoon, increase in the capital expenditure, at 29.37 percent and 70.63 percent respectively in It is estimated to grow by 13.0 percent to 9.74
energy management and improvement in the fiscal year 2016/17. million metric ton in fiscal year 2016/17 as
investment environment lead to an expansion of The share of gross domestic savings in GDP is compared to the previous fiscal year. Of the
economic activities. As a result, the GDP at basic estimated to grow by 6.43 percentage points in food production, paddy/rice production recorded
price is expected to grow by 6.94 percent in the fiscal year 2016/17 as compared to the previous the highest growth of 21.6 percent reaching
current fiscal year, the highest since the 1993/94 fiscal year. Such share is estimated to be 10.25 5.23 million metric ton in the current fiscal
fiscal year. The economy which had previously percent in the current fiscal year. Likewise, the year. Likewise, production of other food crops,
due to the earthquake and unofficial blockade is ratio of gross national savings to GDP is estimated cash crops, industrial and spice crops have also
on the road to recovery and expansion. to remain at 43.78 percent. Such ratio stood at increased. Irrigation facility has been expanded
During the period, the agricultural and non- 39.96 percent in the previous fiscal year. to additional 9,775 hectares of land in the current
agricultural sectors are estimated to grow by 5.29 Inflation has remained low in fiscal year 2016/17 fiscal year.
and 7.74 percent respectively. In the previous as compared to last few years. In the first eight Employment is estimated to grow by more than
fiscal year, the growth rates were 0.03 and 0.16 months of the current fiscal year, consumer price 3 percent as a result of the economic growth of
percent respectively. Likewise, the service sector inflation stood at 5.1 percent on average. Such the current fiscal year. The number of individuals
and industrial sector are estimated to grow by rate was 9.7 percent in the corresponding period going for foreign employment by obtaining work
6.9 percent and 10.97 percent respectively in the of the previous fiscal year. Growth in agricultural permit is 186,166 in the first eight months of
current fiscal year. production and improvement in overall supply current fiscal year. Of the labor force going for
Nepalese economy is in the stage of structural situation are attributable for such a low inflation foreign employment, 24.5 percent have been
transformation as the share of service sector rate in the current fiscal year. trained workers.

67 | MEX NEPAL YEAR BOOK 2017