Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has said that economic activities have increased in the last fiscal year compared to the previous year.

Unveiling the annual report of the Economic Activities Study for the last fiscal year 2081/82, the Nepal Rastra Bank (NRB) has said that economic activities will increase this year compared to the previous year.

“The inflationary pressure has been low in the fiscal year 2082/83. The economic growth is expected to be higher than average due to the fall in the prices of fuel and food items worldwide, the fall in the interest rate of loans and deposits, the significant increase in hydropower production, the increase in the arrival of foreign tourists and the increase in export and remittance inflow and the contraction of construction and manufacturing industries which have been shrinking for the past few years due to the monetary easing provided by the Yes Bank. The report states.

According to the NRB, economic activities in the current fiscal year will be positive compared to the previous year. “There is sufficient liquidity in the economy, the government has forwarded the reconstruction works promoting good governance and the work done by suspending budget on small and under-prepared projects and prioritizing projects is expected to accelerate economic activities,” the NRB said in its report.

According to the National Statistical Office, Nepal’s economic growth rate in the fiscal year 2081/82 is estimated to be 4.6 percent in consumer prices and 4 percent in prevailing prices.

According to the report, the contribution of agriculture, industry and service sector to the Gross Domestic Product (GDP) of the last fiscal year was estimated to be 25.2 percent, 12.8 percent and 62 percent respectively.

Bagmati Province had the highest share of the Gross Domestic Product (GDP) at 36.5 per cent while that of Koshi Province stood at 15.9 per cent. Karnali Province has the lowest share of 4.2 per cent.

According to the report, the production of major agricultural crops has increased by three percent in the last fiscal year. However, the area covered by such crops has decreased by two percent.

Likewise, the production of vegetables increased by 10.1 per cent and spices by 0.7 per cent.

Among the livestock products, milk production decreased by one per cent and meat production by 0.3 per cent while egg production by one per cent. Similarly, the production of timber increased by 8.82 per cent and timber by 4.74 per cent, while the production of medicinal products decreased by 1.91 per cent.

According to the NRB, the average capacity utilization of the industries included in the study was 44.5 percent in the last fiscal year. In the previous fiscal year 2080/81, such capacity utilization was 48.3 percent. The share of industrial sector loan in the total credit extended by banks and financial institutions was 30.42 percent as of Ashad Ashad 2082 BS.

According to the report, the number of tourists visiting Nepal in the last fiscal year increased by 1.7 percent and reached 1147,834.

Likewise, the number of house and building map passes decreased by 1.2 percent and revenue from land registration by 18.6 percent in the last fiscal year. Deposits of banks and financial institutions have increased by 12.5 percent and loan disbursement by 8.2 percent in mid-July 2082 compared to Ashad 2081 BS.

According to the Nepal Rastra Bank, the average loan-deposit ratio stood at 76.6 percent in mid-July 2082. Bagmati Province has the highest share in total deposits and loans of banks and financial institutions. According to the report, the province’s share in total deposits is 65.8 per cent and 59.5 per cent of total loans.