SANGAM

Economy Survey 2009/10 

"Target bar was set too low, scoffs study"

KATHMANDU, JUL 11 -

Though agriculture and non-agriculture sectors failed to achieve set targets,   Nepal´s economy expanded to Rs 1,183 billion and GDP per capita touched Rs 41,851 in 2009-10.

The Economic survey released on Sunday shows the pace of growth in both the agriculture and non-agriculture sector remained slow.

According to the survey, growth of non-agriculture sector is expected to grow by 5.1 percent. Growth in sub-sectors like mining and quarries, industry, gas and water, construction, hotel and restaurant, financial intermediation, real estate, leasing, and commercial services pushed the growth of non-agriculture sector to 5.1 percent.

In the non-agriculture sector, construction is estimated to grow at 6.6 percent. The sector registered good growth due to rapid construction of homes, residential apartments and office buildings in Kathmandu valley and other urban areas.

Growth of commercial services like real estate, leasing and other services that had nominal growth of 1.8 percent in the previous fiscal year is estimated to grow by 4.9 percent this year.

Among the sectors that recorded lower growth in 2009-10 in comparison to 2008-09 are  agriculture and forestry, fisheries, wholesale and retail trade, transport, communication and warehousing, public administration and defense , education,  health and social works, and other community, social and personal services.

The growth of agriculture sector that has the biggest weightage in the total gross domestic product (GDP), according to the survey would be limited to 1.2 percent mainly due to decline in production of paddy and maize.

According to the survey, cereal production decreased

to 77,62000 metric tonnes against 81,15000 metric tonnes last fiscal. The production of paddy and maize decreased while production of wheat,

barley and millet witnessed growth. The cultivation area for cereal production also shrank to 3383,000 hectares from 3418,000 hectares. 

Among cash crops, the total production grew to 5224,000 metric tonnes this year from 4931000 metric tonnes last year in the expanded cultivation of 458000 hectares of land from 434000 hectares. The production of sugarcane, oilseeds (telahan), potatoes and jute increased while production of tobacco was constant this year .

Among other cash crops, pulses (dalahan), fruits and vegetables all saw a growth and their total production grew to 3968000 metric tonnes from the 3695000 metric tonnes last year.

The country saw growth in production of meat, dairy products, eggs and fish last

year as well. Irrigation facility expanded to additional 13119 hectares of land although the facility was expanded by just 2612 hectares last year.

The manufacturing sector is expected grow by 2.6 percent this year as compared to 1 percent negative growth last year.

The production of noodles increased to 42,000 metric tonnes from 40669MT.

Tea production grew to 16,000MT from 15506MT, liquor production grew to 12,000MT from 11907Mt, cigarettes, shoes, soaps, cements and industrial equipments all saw a growth.

The number of hotels went up to 744 this year from 669 last year. Star hotels grew by just 1 to 97, while non-star hotels grew to 647 from 573.

While the number of hospitals remained unchanged

at 102, the number of health posts went up to 1176 from 676 last year, but the number of sub-health posts decreased to 2617 from 3114 last year.

The number of manpower in the health sector also could not grow much as it reached 92181 from 92010.

The survey also revealed that in total, roads expanded to 20138 km from 19209 km in the road expansion year. Black-topped roads expanded to 6304 km from 5859km.

Gravelled roads expanded to 4832 km from 4717km and fair weather roads expanded to 9002km from 8635 km.



Sectors that saw growth

•    Mining and quarrying  (from 0.7 percent to 4.2 percent)

•    Industry (from -1.0 percent to 2.6 percent)

•    Electricity, gas and water (from -0.9 percent to 0.5 percent)

•    Construction (from 0.9 percent to 6.6 percent)

•    Hotel and restaurant (from 3.0 percent to 8.5 percent)

•    Financial intermediation (from 1.5 percent to 1.6percent)

•    Real estate, rent, professional services (1.7 percent to 4.8percent)

Sectors whose growth declined

•    Agriculture and forestry (from 3.0 to 1.1 percent)

•    Fisheries (from 5.7 percent to 5.3 percent)

•    Wholesale and retail trade (from 5.9 percent to 5.6 percent)

•    Transport and communication (from 7.6 percent to 6.5 percent)

•    Public administration and defense (from 7.3 percent to 4.2 percent)

•    Education (from 11.3 percent to 6.5 percent)

•    Health and social works (from 11.2 to 5.6 percent)