The bumper harvest of Nepal's agricultural sector this year has pushed its economic growth rate near the 5 percent target, but the less encouraging industrial growth has cast doubt whether this fiscal year's windfall will continue.
Nepal witnessed GDP growth of 4.60 percent at basic price and 4. 56 percent at producers' price this fiscal year, according to Economic Survey 2012 published by the Ministry of Finance.
In last fiscal year, the growth rate at basic price stood at 3. 9 percent, compared with 4.3 percent in 2009-10.
"Increased agricultural productivity this fiscal along with growth in the service sector ensured the highest growth rate in the last three years, though power shortage, low expansion of bank credit and political uncertainty prevented expansion of industrial production" said Finance Minister Barsha Man Pun.
Record harvest of more than 9.45 million tons this fiscal year pushed the agricultural sector's growth rate by 4.93 percent on an annual basis. The non-agricultural sector, including industry and service sectors, recorded a growth rate of 4.27 percent, compared with last year's 3.4 percent. Though the service sector grew by 5. 1 percent, the industrial sector inched up by 1.3 percent only, according to the survey./.