HP’s economy to shrink by 6.2% this fiscal: Economic Survey

HP’s economy to shrink by 6.2% this fiscal: Economic Survey

The hill state went into strict lockdown in March last year to curb the spread of coronavirus, shutting down all economic activity.

The economy had grown by 8.9% in the previous year.

The per capita income at current prices is estimated to drop by 3.7% to 1,83,286 as compared to the estimated 1,90,407 in 2019-20.

The state budget will be presented on Saturday.

Dip in agriculture and allied sectors

The survey projected that growth in the agriculture and livestock sectors is set to decline by 3.1% due to a decrease of 43% in horticulture production.

The share of agriculture and allied sectors is key as they support 60% of the population in the gross value added (GVA) of the state at current prices that has declined from 15.89% in 2015-16 to 13.62% in 2020-21. This is on account of the relatively higher growth performance of non-agricultural sectors due to structural changes taking place in the economy and is in line with national and international trends.

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