The Economic Survey 2007 released Wednesday portrayed a not so healthy picture of the overall economy of the country. The survey stated that despite some signs of improvement in the social sector, the living standard of the Nepalese people was cramped by slow growth in agriculture and industrial production largely owing to political unrest and sluggish investment.

The Survey shows that the country’s economy grew by a mere 2.29 percent, the lowest in the last five years, and touched Rs 486.84 billion (about US $ 6.90 billion) at constant prices. The survey also pegged the gross domestic product (GDP) growth for the current fiscal year 2006-07 at 2.5 percent, as against last year’s 2.8 percent.

Amid restoration of peace, road construction picked up in 2007. The government added 312 kilometers of roads, including 304 km of black-topped roads, in the existing road network during the first eight months of the fiscal year. The registration of new vehicles also increased by 11 percent during the same period, making 33 vehicles per km of roads.

Similarly, the number of health care units, including hospitals and health posts, has increased to 6,944 as of mid-March 2007 from 6,796 in July last year. The number of trained health workers rose to 91,744 from 90,849 during the period.

In another proof of the improvement in social sector, the total number of schools went up by 7,567 as against a decline of 2,186 recorded last year. The number of students and teachers have also gone up.

On the economic front, the slow growth in agriculture and industrial sector contributed to the dismal performance of the overall economy. The agriculture sector, hit by poor paddy production, is projected to grow by a mere 0.65 percent as against last year’s 1.1 percent, while the industrial sector grew by 2.16 percent as it reeled under labor stir, Terai unrest and sluggish investment. The total foreign trade dropped by 2.6 percent to Rs 154.68 billion. The total foreign debt rose by 6.9 percent to Rs 234.8 billion, while the domestic loan increased by 10.16 percent to Rs 102.3 billion.