Madhes Province Is Expected to Record Weak Economic Growth This Fiscal Year

Madhes Province is expected to witness weak economic growth in the current fiscal year due to the declining contribution of paddy, fishery and forestry sectors, along with negative growth in agriculture production.

According to macroeconomic indicators related to provincial gross domestic product (GDP) released by the National Statistics Office’s Statistics Coordination Office in Dhanusha on Wednesday, the province is expected to record its lowest economic growth rate in the past three years. Statistics Officer Nara Bahadur Kunwar said insufficient rainfall adversely affected paddy cultivation and fish production, resulting in slower economic growth. The province had recorded an economic growth rate of 3.18 percent in fiscal year 2080/81 BS, which declined to 2.72 percent in fiscal year 2081/82 BS.

The office stated that continuous negative impacts on agricultural production for the past two years have contributed to the declining growth trend in Madhes Province. The preliminary estimate also shows that Madhes Province’s contribution to the national GDP is expected to remain at 13.1 percent in the fiscal year 2082/83 BS.

Speaking at the programme, Provincial Policy and Planning Commission member Raj Kishor Singh said the reduced contribution of the agriculture sector has created economic challenges in the province. He added that the upcoming budget would prioritize agriculture, education, health, infrastructure and social development sectors.