Kathmandu — The International Monetary Fund (IMF) has projected Nepal’s economy would grow by around 6 per cent in the current fiscal year 2019/20.
The estimate is low by 2.5 per cent from the 8.5 per cent projection made by the government.
“Economic growth is expected to remain healthy but moderate to around 6 per cent in FY 19/20 amid slower growth in India, sluggish remittances, and weaker agricultural production. However, there has been a welcome narrowing of the current account deficit, stabilisation of gross official reserves, and slower credit growth,” said Laura Jaramillo, Deputy Division Chief of Asia and Pacific Department at the IMF.
Speaking at a press conference organised at the Nepal Rastra Bank to share the conclusion of the consultation, she said that there were signs of moderation in the current fiscal year. The IMF mission also expected 6 per cent inflation driven mainly by food inflation, the Rising Nepal reported.
Jaramillo is leading an IMF team to Nepal to hold discussions for the 2020 Article IV consultation. The team held discussion with Minister of Finance Dr. Yuba Raj Khatiwada, Nepal Rastra Bank Governor Dr. Chiranjibi Nepal and other high-level government officials, as well as representatives from the private sector and development partners from January 5 to 17.
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