Electricity & gas sector poised for highest growth

KATHMANDU, MAY 2 : The electricity and gas sector is initially projected to have the highest growth rate in total value addition in the current fiscal year. According to the national accounts statistics released by the Central Bureau of Statistics, the electricity and gas sector is estimated to grow by 13.82%.

This sector is followed by the transport and storage sector, which is estimated to be the second-highest growing sector with a growth of 9.45%. Similarly, the education sector is projected to grow by 1.98%, and the mining and quarrying sector by 1.994%. Comparatively, the growth in the mining and quarrying and education sectors is expected to be lower.

In 2024/25, the human health activities sector could grow by 4.77%, and the public administration and defence by 2.24%. The professional, scientific, and technical activities sector is expected to grow by 3.98%, real estate activities by 2.72%, financial and insurance activities by 6.29%, information and communication by 4.81%, accommodation and food service activities by 5%, wholesale and retail trade by 3.30%, construction by 2.21%, industry by 3.78%, and agriculture by 3.28%, according to the initial estimates of the statistics office.

Furthermore, the agriculture, forestry, and fishing sector may contribute the largest share to the total Gross Domestic Product (GDP) this fiscal at 25.16%. The trade sector is the second-largest contributor, with an estimated 14.55% contribution to GDP in the current fiscal year. On the other hand, water supply, sewerage, and waste management at 0.42%, and mining and quarrying at 0.464% are estimated to be the activities with the relatively smallest contributions.

The growth in the agriculture sector is anticipated in 2024/25 due to the expected increase in the production of paddy, oilseeds, pulses, and vegetables, as well as livestock products (milk, eggs, fish, and meat) compared to the last fiscal year. However, the overall value addition in the agriculture sector is not expected to increase significantly due to the negligible growth anticipated in the production of fruits and some other winter crops. The revised estimated growth rate for this sector in 2023/24 is 3.35%. In 2022/23, the growth rate in this sector was 3.02%.

The mining and quarrying sector could contribute 0.46% to the total GDP in the current fiscal year. The total value addition in this sector is initially estimated to increase by 1.99% compared to the last fiscal year. The positive growth in the construction sector and a slight improvement in royalty collection in the mining and quarrying sector compared to the last fiscal are expected to lead to a modest improvement in the value addition of this sector. Similarly, the revised estimated growth rate for this sector in 2023/24 is 3.23%.

The electricity and gas sector is estimated to contribute 1.73% to the total GDP in 2024/25. The significant growth in this sector appears to be due to the increase in hydropower production capacity and the expansion of consumption in recent years. The revised estimated growth rate of the total value addition in this sector for the last fiscal is 10.96%.

Similarly, the water supply, sewerage, waste management, and recycling activities sector is estimated to contribute 0.42% to the total GDP in the current fiscal year. The construction sector is estimated to contribute 5.24% to the total GDP. The statistics office has indicated that this sector, which had seen negative growth rates for the past two years, is showing signs of improvement in the current fiscal year due to increased imports of construction materials and higher production of industrial goods related to construction.

The wholesale and retail trade, and repair of motor vehicles and motorcycles sector is estimated to contribute 14.55% to the total GDP. The accommodation and food service activities sector is estimated to contribute 2.46% to the total GDP.