By TRN Online, Kathmandu, Nov. 23:  The Economic growth rate of Province 2 has been estimated to be by 3.5 per cent in the fiscal year (FY) 2020/21.

According to the Provincial Economic Activities Study of province 2 prepared by the Central Bureau of Statistics (CBS), the gross domestic product (GDP) at current price is estimated to grow by 3.5 per cent to Rs. 561 billion.

The study revealed that the contribution of agriculture, industry and service of Province 2 GDP remained to be 38.3 per cent, 11.5 per cent and 50.2 per cent respectively.

According to the preliminary estimation of the current review period, the contribution of agriculture, industry and service of Province 2 in the national economy is estimated to be 19.90 per cent, 11.77 per cent and 11.01 per cent respectively.

The contribution of Province 2 in the national GDP at the producer price is estimated to be 13.2 per cent in the FY 2020/21.

In the agricultural sector, the study showed that agriculture and crop production grew by 1.20 per cent, vegetable production by 0.59 per cent and fruit and spices by 14.51 per cent in the review period.

In the review period, milk production grew by 2.88 per cent, meat production by 5.33 per cent, egg production by 1.93 per cent and fish production by 4.17 per cent.

Similarly, banks and financial institutions (BFIs) extended the loan and advances of Rs. 44.28 billion in the agriculture, fishing and forestry sector in the review period.

The study revealed that capacity utilization of the main industries remained to be 52.47 per cent in the period. Also, the industrial sector of Province 2 received a significant amount of loans and advances.

In the review period, loans and advances from the BFIs in the industrial sector of Province 2 are recorded at Rs 105.2 billion.

The study revealed a rapid growth of the service sector in Province 2. The number of housing registration grew by 54.11 per cent and the revenue grew by 79.88 per cent from the registration of housing.

The deposit in the BFIs grew by 30.27 per cent to Rs. 248.5 billion and lending grew by 29.34 per cent to Rs. 368.5 billion until mid-July 2021.