The National Statistics Office (NSO) has projected that Bagmati Province will achieve the least economic growth rate in the current fiscal year 2022/23. The province is expected to grow by just 1.4 percent, which is significantly lower than the growth rate of other provinces.
The slowdown in the economy of Bagmati Province is attributed to a number of factors, including the slowdown in the construction sector, the decline in wholesale and retail businesses, and the outflow of foreign investment.
The slowdown in the construction sector is due to the rising cost of materials and the shortage of skilled labor. The decline in wholesale and retail businesses is due to the rising prices of goods and services and the decline in consumer spending. The outflow of foreign investment is due to the political instability in the country and the uncertain economic outlook.
The slowdown in the economy of Bagmati Province is likely to have a negative impact on the overall economy of Nepal. This is because Bagmati Province is the most important economic hub of the country. The slowdown in the province is likely to lead to a decline in tax revenue, which will further impact the government's ability to provide essential services.
The government needs to take steps to address the slowdown in the economy of Bagmati Province. These steps could include:
- Investing in infrastructure
- Providing tax breaks
- Promoting tourism
The government needs to take urgent steps to address the slowdown in the economy of Bagmati Province. If the government does not take action, the slowdown is likely to have a negative impact on the overall economy of Nepal.
