Gross domestic product (GDP) growth inNepal is estimated at 7.1 percent in FY2019, driven mainlyby the service and agriculture sectors. The service sectoris likely to grow by 7.5 percent due to a boost in theretail, hotel, and restaurant subsectors, driven by anuptick in tourist arrivals and remittance-fueled privateconsumption. Agriculture is estimated to grow by 5 percentin FY2019, well above its 30-year average of 3.1 percent,due to good monsoons, increased commercialization,availability of fertilizers and seeds, and improvedirrigation facilities. Industrial growth is also likely tobe strong at 8.1 percent, well above its 30-year average of5 percent, mainly due to improved power availability fromincreased electricity generation. Private investment andconsumption are likely to be the main contributors to growthon the demand side. However, public investment is projectedto contract due to a slowdown in post-earthquakereconstruction and delays in national pride projects likeMelamchi water supply and Upper Tamakoshi hydroelectric.