GDP Comparison of Nepal (2017/18 – 2021/22)

The GDP of Nepal as of 2017/18 was 3.077 trillion which accounted for an increase of 468.96 billion (17.98%) compared to the previous year. The Agricultural Sector. Similarly, as of 2018/19, the total GDP was 3.456 trillion with an increase of 378.80 billion (12.31%), as of 2019/20, total GDP was 3.859 trillion with an increase of 402.98 billion (11.66%), as of 2020/21, the total GDP was 3.915 trillion with an increase of 55.77 billion (1.45%) and as of 2021/22, total GDP was 4.266 trillion with an increase of 351.62 billion (8.98%). 

Comparing the statistics of Five years (2017/18 – 2021/22), the highest growth in the GDP was reported on the fiscal year 2017/18 that is 17.98% which was accounted for by an increase of revenue by 18.6% in Service, 9.6% in Agriculture, 19.91% in industry and 33.66% by net tax revenue. Since the fiscal year 2017/18, the rate of increase in the GDP of Nepal has dropped significantly. Following the year 2017/18, the rate of increment dropped by 5.67% in the fiscal year 2018/19, 0.65% in 2019/20, then was followed by a drop of 10.22% in 2020/21 which tried to stabilize with an increase of 7.54 % in the rate of increment in 2021/22.

The largest drop in growth rate in the five years (017/18 – 021/22) was recorded in the fiscal year 020/21. Although there was positive growth (1.45%), the rate of growth had declined by 10.22% compared to the previous year’s growth (11.66%), similarly, the GDP had decreased by 347.21 billion in the year 020/21 (55.77 billion) compared to the increments of the previous year (402.98 billion). The decline in the growth rate and increment of GDP was served by the drop of 8.64% (145.14 billion) in the Service sector which was 3.96% (79.44 billion) compared to 12.60% (224.58 billion) in the previous year. Additionally, the decrement was also served by the drop of 18.07% (86.10 billion) resulting in the only negative growth in the industry sector which was -8.01% (-40.24 billion) compared to 10.05% (45.87 billion) in the previous year. Also, the drop of 020/21 was served by a huge drop of 26.90% (127.41 billion) in Tax Revenue. The tax revenue in the year 020/21 was -55.89 billion (-10.82%) compared to the increment in the collection of 72.52 billion (16.08%) in the previous fiscal year. The growth of the Agricultural Sector remained consistent with an increase in the growth rate of 0.80%. Therefore these factors constituted the drop in the growth rate of GDP in Nepal.

    Sector-wise contribution in GDP in five years (in million)

From an Individual Economic sector perspective, Agriculture accounts for the highest contribution to National GDP with an average contribution of 840760.80 million (22.67%). The Agriculture sector experienced the highest growth in 2017/18 with a total production of 729.26 billion which was 63.7 billion (9.57%) higher than the previous year whereas in the following year 2018/19 the growth in Agriculture dropped by 3.73% to 5.84%. Since 018/19, there was a consistent growth in Agriculture followed by 7.90% in 019/20, 8.70% in 020/21 until 021/22 where it dropped by 2.17% to 6.53%. Therefore, the rate of increase in growth rate remained consistent from 018/19 to 020/21 after the downfall of 2018/19 of 3.73% until 021/22 where 2.17% downfall was experienced.

 As a whole, the Service sector has accounted for the highest contribution to total GDP consistently from 017/18 to 021/22 with an average contribution of 1950462.80 million (52.44%), followed by Agriculture with an average contribution of 840760.80 million (22.67%), followed by industry with an average contribution of 461072.0 million (12.47%) and lastly by Net Tax Revenue with an average contribution of 462313.40 million (12.42%).

There are minor changes in the various sectors regarding the contribution to the GDP. From the year 2017/18 till 2021/22, the contribution part of the sector to the GDP is consistent with minor fluctuations (< +/-1%).

Source: Nepal Rastra Bank

Note: Fiscal year of Nepal falls 16 July to 15 June</span