JANAKPUR: Madhesh Province is expected to record an economic growth rate of only 1.31 percent in the current fiscal year, mainly due to the negative impact of weak agricultural production, according to the National Statistics Office.
The estimate was made public by the Statistics Coordination Office in Dhanusha through macroeconomic indicators related to the provincial gross domestic product (GDP).
Officials stated that insufficient rainfall adversely affected key agricultural sectors, particularly rice cultivation, fisheries, and forestry, significantly reducing their contribution to the provincial economy.
Statistics Officer Nar Bahadur Kunwar said the province is likely to witness its lowest economic growth rate in the past three years because of the decline in rice and fisheries production.
According to the office, Madhesh Province recorded economic growth of 3.18 percent in fiscal year 2080/81 and 2.72 percent in fiscal year 2081/82. The office noted that economic growth has continued to decline over the past two years due to the weakening performance of the agriculture sector.
The preliminary estimate also suggests that Madhesh Province’s contribution to Nepal’s annual gross domestic product in fiscal year 2082/83 will stand at 13.1 percent.
Speaking at the data publication program, Rajkishor Singh, a member of the Provincial Policy and Planning Commission, said the slowdown was largely linked to the declining contribution of agriculture to the provincial economy.
He added that the upcoming provincial budget would prioritize agriculture, education, health, infrastructure, and social development sectors.
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