The Central Bureau of Statistics (CBS) on 4 March 2021 announced that Nepal had rebased its National Accounts statistics, meaning that it changed the base year for the calculation of the Gross Domestic Product (GDP) from 2000/01 to 2010/11. As a result, Nepal’s GDP for FY 2019/20 amounted to NPR 3.943 trillion, which is a 5% increase when compared to the GDP based on the old base year. However, the GDP growth rate for the year contracted by 1.99%. Likewise, this has also increased the Per Capita GDP of Nepalis to USD 1,134.
History of Re-basing in Nepal
Change in GDP Composition
With the change in the base year, the composition of the primary, secondary, and tertiary sectors in Nepal’s GDP for 2010/11 also saw some change. The contribution of the primary sector (Agriculture) and secondary sector (Manufacturing & Processing) slumped by 9.5% and 3.2% respectively, while the contribution of the tertiary sector (Service) surged by 8.4%. The new shares of the primary, secondary, and tertiary sectors in the GDP for 2010/11 amounted to 34%, 13.9%, and 52% respectively.
Reasons for Re-basing
- Implementation of the recommendation of the 2008 Systems of National Accounts (2008 SNA)
- Adoption of a new methodology for calculating GDP.
- Increase in the coverage of economic activities and inclusion of new economic activities.
- Adoption of a new classification of economic activities (Implementation of International Standards Industrial Classification rev. 4)
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