Friday, April 27, 2018

Ten Facts about Nepalese Economic Growth

1. GDP is estimated in Nepal by using all the three methods: Output method, Expenditure method and Income method. 
 
2. The size of the economy is NRs. 3007 billion which is about 0.04 percent of world GDP.
 
3. Indian Economy is about 107 times and the Chinese economy is about more than 530 times larger than Nepal.
 
4. The share of agriculture sector in GDP is falling over the time and has reached about 28 percent in 2018.
 
5. GDP growth is expressed as the growth of real GDP at basic prices. So, Nepal's growth rate is 5.9 percent in 2018 not 6.3 percent though both of them are reported in the statistics. 
 
6. Remittance is not included in GNI as many people guess. Rather, it is included in Gross National Disposable Income (GNDI). 
 
7. Primary sector of the economy is more than agriculture sector. It also includes mining activities. So, growth of agriculture sector and growth of primary sector are somewhat different. 
 
8. Paddy is the single commodity that can affect the growth of Nepalese GDP heavily. If Paddy production rises by nearly 17 percent, growth rate would be pushed upwards by one percent. 
 
9. Though hydro power and tourism activities are the most potential areas of the economy, the currently contribute for less than 5 percent of the economy's production. 
 
10. For the first time after 2000/2001, domestic savings as a percent of GDP has reached 15 percent.