IMF Staff Country Reports

Nepal : Selected Issues

Author/Editor:

International Monetary Fund. Asia and Pacific Dept

Publication Date:

February 17, 2019

Electronic Access:

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Summary:

This Article IV Consultation highlights the economy’s  good recovery after several natural disasters, supported by accommodative fiscal and monetary policies. Growth performance picked up in recent years with improved political stability, though average growth rates were still lower than in other emerging market and developing economies. Fiscal buffers have been used, and external conditions, including oil prices and growth prospects of main trading partners, are becoming less favorable. Improving the overall business environment and governance is expected to raise potential growth by mobilizing private investment, enhancing productivity, and diversifying the economy. Improvement in the overall business environment is essential to achieve the ambitious growth targets laid out in the National Development Plan. Streamlining procedures for doing business, accelerating the activation of the credit reporting agency, and reducing tax compliance costs were recommended.

Series:

Country Report No. 19/61

Subject:

Development Financial infrastructure Financial sector Financial sector development Financial services Fiscal policy Intergovernmental fiscal relations Macroprudential policies and financial stability Public financial management