Kathmandu. The agriculture sector, which is the largest contributor to Nepal’s economy, has been sluggish in the third quarter of the current fiscal year 2082/83. According to the quarterly national accounts data released by the National Statistics Office, the growth rate of agriculture, forestry and fisheries has been limited to 1.58 percent.

According to the office, the decline in rice production has weakened the overall growth of the agriculture sector. According to the office, although the production of paddy crops has decreased, a general increase in the production of livestock, vegetables, fruits and forest products has helped to maintain the agriculture sector in a positive situation. According to the report, the contribution of these sub-sectors has saved the agriculture sector from becoming negative.

Although the country’s overall economic growth rate was initially estimated to be 3.51 percent in the third quarter, the weak expansion of the agriculture sector did not give the expected momentum to the economy. According to the Statistics Office, overall economic growth is normal due to decrease in import of construction materials, fall in paddy production and decrease in domestic production of some goods.

During the period, 16 out of 18 industrial classifications saw positive growth. Electricity and gas sector grew the fastest with 24.88 percent growth followed by financial and insurance sector by 10.27 percent, transportation and storage by 7.83 percent and wholesale and retail trade by 5.25 percent. However, the growth of the agriculture sector, which accounts for the largest share of the economy, has been low, and it seems to have a direct impact on the overall economy.

According to economists, the contribution of agriculture to Nepal’s economic structure is still the highest and even minor fluctuations in this sector can have a significant impact on the overall economic growth. The data for the third quarter showed improvements in the energy, financial services and trade sectors, but the stability of agricultural production remains a challenge.