According to provisional
estimates of national income accounts, real
GDP remained at its long-term growth path in
FY06 with a growth rate of 6.6 percent. While
this growth is marginally lower than the 7.0
percent annual target, this is quite
impressive given the aftermath of the
earthquake, the relatively poor harvests of
key crops, the impact of high oil prices and
rising domestic interest rates. The greater
contribution to this high growth rate is by
the services sector, which exhibited a
remarkable 8.8 percent growth during FY06 as
compared to the 4.3 percent growth of the
commodity-producing sector in the same period.
Within the services sector, the highest growth
was seen in finance & insurance (23.0 percent)
followed by wholesale & retail trade (9.9
percent). |