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

International Monetary Fund

No 2025/285, IMF Staff Country Reports from International Monetary Fund

Abstract: Nepal has, so far, been relatively insulated from recent global trade and aid-related disruptions given its small export sector. Economic activity has continued to gradually recover, underpinned by a rebound in construction and manufacturing, continued expansion of hydropower, and a good harvest that helped offset the impact of the September 2024 floods. Growth in FY2024/25 is estimated to reach 4.3 percent, although still below potential. Inflation is expected to remain within the Nepal Rastra Bank’s target of about 5 percent. The external position has strengthened, with robust growth in exports, remittances, and tourism outpacing the recovery in imports. Despite improved growth, non-performing loans have continued to rise, eroding bank capital. The financial health of the savings and credit cooperatives remains challenging.

Pages: 124
Date: 2025-10-06
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=570974 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/285

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().