The government has projected the country's economic growth rate to be limited to 3.5 percent. 

This projection was made in the mid-year review of the current fiscal year's budget. 

The annual growth rate of the gross domestic product (GDP) for the current year was estimated to be six percent.

However, due to the decrease in rice production, area and productivity, slowdown in the construction sector, and decline in real estate and land transactions, among other reasons, a new projection has been published in the mid-year review, indicating that the economic growth rate will shrink to 3.5 percent.

Last fiscal year's total GDP growth rate is estimated to be 4.6 percent.

As per the mid-year evaluation report of the budget, the preliminary estimate shows that the GDP at basic prices increased by three percent in the first quarter of the current fiscal year. The revised estimate suggests that the GDP at basic prices increased by 2.9 percent in the same period of the previous fiscal year.

It is estimated that the total value addition of the agricultural sector in the first quarter of the current fiscal year will expand by 1.36 percent compared to the same period of the previous fiscal year.

Particularly, based on the expectation of a decrease in rice production and an increase in livestock, vegetable, and fruit production, the growth rate of the value addition to the agricultural sector is expected to be relatively low.

In the current fiscal year, the production of food crops such as maize, millet, and buckwheat is expected to increase. In the previous fiscal year, the production of food crops like paddy, wheat, and maize is estimated to have increased by 2.67 percent and the production of cash crops by 2.01 percent.

The total value addition of the industrial sector is expected to increase by 5.44 percent in the first quarter of the current fiscal year compared to the same period of the previous year. The expansion of activities in the energy and construction sectors in the current fiscal year is expected to have a positive impact on the overall industrial sector.

In the first quarter of the current fiscal year, the total value addition of the production-based industries is expected to grow by 1.52 percent. During the same period, the total value addition of the service sector is expected to increase by 3.03 percent compared to the same period of the previous fiscal year.

It is estimated that the expansion in wholesale and retail trade, financial intermediation, general administration and defence, tourism activities, and personal services will have a positive impact on the overall service sector in the current fiscal year.

According to the mid-year budget review report, the average inflation for the first six months of the current fiscal year is 1.7 percent. In the same period last year, inflation was 4.97 percent.