KATHMANDU: Nepal’s fixed investment is projected to increase in the current fiscal year, according to the Economic Survey made public by the government on Wednesday.
The survey estimates that fixed investment will grow by 18.6 percent during the current fiscal year, compared to a 10.9 percent increase recorded in the previous fiscal year.
According to the report, total fixed investment is expected to reach 26.26 percent of the country’s gross domestic product (GDP), up from 23.57 percent in the last fiscal year. Over the past decade, total investment and total fixed investment have averaged 34.26 percent and 28.45 percent of GDP annually, respectively.
The survey also states that private sector fixed investment has seen significant growth. Nearly three-fourths of the country’s total fixed investment is attributed to the private sector.
Total fixed investment during the current fiscal year is estimated at Rs 1.733 trillion.
Of the total fixed investment, the share of government investment, including public enterprises, is projected at 26.5 percent, while the private sector is expected to contribute 73.5 percent.
In the previous fiscal year, the shares stood at 42.3 percent and 57.7 percent respectively.
The report notes that government investment is likely to decline significantly due to comparatively low capital expenditure by all three tiers of government during the current fiscal year.
Over the past decade, the average share of private and public sector investment in total fixed investment has remained at 68.3 percent and 31.7 percent respectively.
Despite low capital expenditure and sluggish credit investment, overall investment has continued to rise, the survey states.
Total investment, which grew by 10.7 percent in the previous fiscal year, is projected to increase by 15.6 percent this fiscal year to reach Rs 2.107 trillion.
According to the survey, total investment has averaged 34.26 percent of GDP over the past decade.
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