Nepal: Request for an Arrangement Under the Extended Credit Facility -Press Release; Staff Report; Debt Sustainability Analysis; Staff Supplement; Statement by the Executive Director for Nepal
IMF Staff Country Reports, January 27, 2022
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- Nepal: Request for an Arrangement Under the Extended Credit Facility -Press Release; Staff Report; Debt Sustainability Analysis; Staff Supplement; Statement by the Executive Director for Nepal
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Bibliographic details
- Published: January 27, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400200380.002
Summary of key findings
- The COVID-19 pandemic severely impacted Nepal’s economy: tourist arrivals collapsed, domestic activity plummeted, and remittances have been volatile.
- Balance of payments and fiscal financing gaps emerged as a result of the shock.
- After growth was lower than expected in 2019/20, a gradual resumption in economic activity and a corresponding surge in imports and related tax receipts led to higher growth and improved fiscal outturns in 2020/21.
- Important fiscal and external financing needs remain to:
- support the COVID-19 response,
- facilitate a continued recovery,
- maintain a comfortable level of reserves.
Macroeconomic and sectoral impacts (as described)
- Tourism: tourist arrivals collapsed (no numeric breakdown provided in the source content).
- Domestic activity: plummeted in the pandemic period (no numeric breakdown provided).
- Remittances: volatile, contributing to external balance pressures.
- Trade: a surge in imports during the recovery phase increased tax receipts and supported higher growth in 2020/21.
Policy implications and priorities
- Address remaining fiscal financing needs to support public health and the COVID-19 response.
- Mobilize external financing to close balance of payments gaps and preserve reserve adequacy.
- Ensure policies that facilitate a sustained economic recovery while maintaining fiscal and external sustainability.
Publication metadata and identifiers
- Publication date: January 27, 2022
- Pages: 102
- Volume: 2022
- Issue: 024
- Series: Country Report No. 2022/024
- DOI: https://doi.org/10.5089/9798400200380.002
- Stock No: 1NPLEA2022001
- ISBN: 9798400200380
- ISSN: 1934-7685
- Subjects: Asset and liability management, COVID-19, Debt relief, External debt, Financial regulation and supervision, Health, International organization, Monetary policy, Public debt
- Keywords: consumer price inflation, COVID-19, Debt relief, ECF arrangement, financing gap, Global, import surge, November data, procurement contract
Source: Nepal: Request for an Arrangement Under the Extended Credit Facility -Press Release; Staff Report; Debt Sustainability Analysis; Staff Supplement; Statement by the Executive Director for Nepal (IMF Staff Country Reports), January 27, 2022.
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- 1nplea2022001