Most private economists have lowered country's growth forecast to around 7% for 2018-19The government on Monday said it estimated GDP or gross domestic product growthat 7.2 per cent in2018-19, as against 6.7 per cent in 2017-18.
The economic growth projection was part of "First Advance EstimatesofNational Income 2018-19" report by theCentral Statistics Office (CSO), under Ministry of Statistics and Programme Implementation.The growth estimate was in line with economists' expectations.Most private economists have lowered country's growth forecast to around 7 per cent for 2018-19 fiscal year, compared with central bank's earlier estimate of 7.4 per cent, citing weakening consumption and slowdown in credit offtake.( Finance Ministry sees GDP growth crossing 7.5% in 2018-19)"Sequential growth has slowed down across board.
Slowdown in manufacturing, construction and select services are main reasons for slowdown seen in 2018/19," said Rupa Rege-Nitsure, chief economist at LT Financial Holdings.Growth in real GVA or gross value added at basic constant prices (2011-12) was expected at 7.0 per cent in 2018-19, as against 6.5 per cent in previous financial year.GVA is measure of national income and output that includes taxes and excludes subsidies.Improvement in performance of agriculture and manufacturing sectors mainly contributed to GDP growth estimate of current financial year.The sectors that are estimated to register growth above 7 per cent include electricity, gas, water supply and other utility services; construction; manufacturing; and public administration, defence and other services, Central Statistics Office said in its report.The economic growth of 6.7 per cent registered in 2017-18 was slowest in four years.The GDP had expanded by 7.1 per cent in 2016-17, and 8.2 per cent in 2015-16.