Kathmandu, Sep 25 (FN Agency) The International Monetary Fund (IMF) has said that Nepal’s economy is showing early signs of recovery, suggesting that addressing vulnerabilities among savings and credit cooperatives should remain the country’s priority, media reports said. “Incoming high-frequency data shows import growth is entering positive territory, tax collections are improving, and public investment is picking up,” said a statement issued by the IMF staff team, led by Sarwat Jahan, who concluded the Kathmandu visit, on Sunday. The 12-day staff visit, starting on September 11, delved into recent macroeconomic developments and the implementation of the IMF’s Extended Credit Facility (ECF)-supported program, the Kathmandu Post reported.
The IMF’s statement reads, “Credit growth is recovering while remaining appropriately below nominal GDP growth. Inflation continued to decelerate to around 3.6 percent by mid-July, partially reflecting favourable commodity prices and weak demand. International reserves continued to rise, underpinned by robust remittances, recovering tourism, and still subdued imports.” It said that accelerating the reform momentum is critical to put the economy on a path towards sustainable, strong, and inclusive economic growth, the reports said. “This will require enhancing public investment execution, further strengthening domestic revenue mobilisation, and prompt disbursement of Child Grants.”