By Our Reporter

The National Statistics Office (NSO) has made a preliminary projection of 3.4 per cent growth in the gross domestic product (GDP) at the constant price in the first quarter of the current fiscal year 2024/25.

In the seasonally unadjusted quarterly GDP projection report made public on Tuesday, the NSO estimated an increase of 3.4 per cent in GDP in the first quarter of the current fiscal year as compared to the first quarter of the previous fiscal year 2023/24.

The positive growth of the economy in this quarter was mainly attributed to the increase in agricultural production, increase in electricity generation and distribution, rise in tourism arrivals, and increase in total value addition in the hotel sector.

In addition, growth in the transportation sector, healthcare services and public administration have led to positive growth in the overall economy, said the report.

The economic growth is expected to remain modest, particularly due to the negative impact of floods and landslides during this period and the failure of the construction sector to achieve positive growth.

The total value-added growth rate of 17 industrial sectors out of the total 18 industrial classifications presented in the economy has been positive during the first quarter of the current fiscal year 2024/25 as compared to the previous fiscal year 2023/24.

Among them, electricity and gas-related activities have the highest growth rate of 21.4 per cent, while the transportation and storage sector is the second fastest-growing industrial sector with a growth rate of 6.7 per cent.

The growth rate of the administrative support services sector is estimated at 5.4 per cent and the growth rate of professional, scientific and technical services at 5.1 per cent.

On the other hand, the construction sector is estimated to have contracted slightly (0.3 per cent) due to a decline in imports of construction materials in the first quarter of the current fiscal year 2024/25.

The agriculture, forestry and fisheries sector, which accounts for the largest share of the economy, is estimated to have a value-added growth rate of 3 per cent, said the NSO.