JANAKPUR: Due to the negative impact on the agricultural sector in Madhesh and the relatively lower contributions from the paddy, fishery, and forestry sectors, the economic growth rate is projected to remain weak in the current fiscal year.

This was indicated in the aggregate economic indicators related to the provincial gross domestic product estimates made public on Wednesday by the National Statistics Office, Statistics Coordination Office in Dhanusha.

According to the Statistics Office, the economic growth rate will hit its lowest point in three years due to inadequate rainfall, which severely impacted paddy and fishery production.

In the fiscal year 2023/24, Madhesh recorded an economic growth rate of 3.18 percent, which dropped to 2.72 percent in the fiscal year 2024/25.

The office stated that the economic growth rate has been continuously declining due to the negative impact on agriculture in Madhesh for the past two consecutive years.

Preliminary estimates suggest that Madhesh Province’s contribution to the national annual gross domestic product will stand at 13.1 percent in the fiscal year 2025/26.

Speaking at the data release event, Raj Kishor Singh, a member of the Provincial Policy and Planning Commission, noted that this challenge arose directly from the declining contribution of agriculture in Madhesh Province.