Kathmandu: Nepal's economic growth has come down to 3.5 per cent in the fiscal year 2010-11, the lowest in the last four years, according to the Economic Survey published by the Finance Ministry recently.

Despite the agriculture sector posting a 4.1 per cent growth, the slowdown in the non-agriculture sector limited the growth, the report said.

The non-agriculture sector is estimated to grow by a mere 3.1 per cent against last year's 5.4 per cent. Under the non-agriculture sector, the estimated growth of the industrial sector is mere 1.5 per cent.

A combination of several factors like labour unrest, energy crisis, decline in expansion of banks' lending, low remittance growth and political instability, all contributed to the non-agriculture sector's slowdown, according to the report.

Inflation rate has reached 9.6 per cent against the target of 7 per cent set in last year's budget. The budget projected economic growth of 4.5 per cent and Balance of Payment surplus of NRs 9 billion.

However, the survey showed that only 3.5 per cent growth was achieved and Balance of Payment deficit has reached NRs 11.30 billion in 2010-11.

(Agencies)