IMF Staff Country Reports

Nepal: Third Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Nepal

Publication Date:

December 6, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Nepal’s post-pandemic rebound, fueled by a credit boom, came to an end last year as growth slowed markedly. Low domestic demand helped resolve external pressures but also deflated government revenue and led to a widening of the fiscal deficit despite spending discipline. Despite the November 2023 earthquake, growth is expected to recover to 3.5 percent in FY2023/24, which is below potential. Inflation is declining but remains high. While the financial sector appears to be weathering the credit contraction, regulatory and supervisory practices need to continue to be strengthened to facilitate the needed transition to more sustainable and pro-growth credit growth.

Series:

Country Report No. 2023/384

Subject:

Asset and liability management Credit Debt Relief Fiscal risks International organization Monetary policy Money Public debt Public financial management (PFM) Revenue administration

Frequency:

regular