Contraction in the key sectors contributing to the gross domestic product (GDP) has squeezed the economic growth rate to 3.56 per cent for the current fiscal year.
The largest contributor to the GDP, agriculture, is expected to contribute 34.33 per cent to the GDP in the current fiscal year from last fiscal year's 35.36 per cent, according to the Central Bureau of Statistics (CBS) projection.
Despite being mainstay of economy, agriculture could not see any improvement in the last one decade. "Agriculture had contributed 36.92 per cent to the GDP in the fiscal year 2001-02," said deputy director general of CBS Suman Aryal. "But its contribution had dropped to 31.22 per cent in the fiscal year 2007-08," he said, adding that the fluctuation of the sector's contribution to the GDP also reveals that there is no proper planning.
However, the second largest contributor to the GDP, wholesale and retail trade, has been constant. Propelled by remittance inflow, the sector has however seen regular growth in the last three years. The wholesale and retail trade has been projected to contribute 14.42 per cent to the GDP in the current fiscal year, whereas in the last fiscal year, it had contributed 13.67 per cent.
Compared to last fiscal year, transport, storage and communication has increased its contribution to the GDP to 9.20 per cent, the sector had also witnessed a roller-coaster ride over the years.
Likewise, real estate, renting and business activities has contributed to its largest of 10.15 per cent in the fiscal year 2006-07, it has been projected to contribute 8.48 per cent to the GDP in the current fiscal year.
Construction — the fifth largest contributor — is expected to contribute 6.91 per cent to the GDP in the current fiscal year, compared to 6.81 per cent in the last fiscal year, according to the CBS data, which reflects the movement in the sector, after bubble burst a couple of years ago.
The only sector that has been continuously performing poorly in the last one decade is manufacturing that is expected to contribute 6.17 per cent in the current fiscal year — lower from last fiscal year's 6.28 per cent — to the GDP. The manufacturing is the only sector that has been neglected by the successive governments despite their tall claims of promoting export and private sector for employment generation in the country.
Similarly, the lowest contributor to the economy, fishing, is projected to contributed 0.41 per cent to the GDP in the current fiscal year, from last fiscal year's 0.39 per cent.
'The data is the reflection of country's real economic picture," Aryal said, urging the concerned authorities to take stock of their respective sectors and plan ahead for sustainable economic development.
The key contributors to the GDP
Sector — Composition in 2011-12 — Composition in 2012-13
Agriculture — 35.36 per cent — 34.33 per cent
Wholesale and retail trade — 13.67 per cent — 14.42 per cent
Transport, storage and communication — 8.57 per cent — 9.20 per cent
Real estate, renting and business activities — 8.30 per cent — 8.48 per cent
Construction — 6.81 per cent — 6.91 per cent
Manufacturing — 6.28 per cent — 6.17 per cent
Education — 5.47 per cent — 5.39 per cent
Financial Intermediation — 4.52 per cent — 4.20 per cent
Other community, social, and personal service activities — 3.74 per cent — 3.55 per cent
(Source: Central Bureau of Statistics)