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

December 6, 2023

Preview Citation

Format: Chicago

Nepal: Third Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Nepal, (USA: International Monetary Fund, 2023) accessed November 21, 2024

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.

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

Keywords: Asia and Pacific, Authorities of Nepal, Credit, Debt relief, Development partner, ECF program, Fiscal risks, Global, Governance framework, Monetary policy transmission, Nepali authorities, South Asia

Publication Details

Pages:

83
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2023/384
Stock No:

1NPLEA2023004
ISBN:

9798400261305
ISSN:

1934-7685

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