The IMF on Friday expressed satisfaction with Nepal's economic progress and said the challenge for authorities now is to sustain growth and reduce poverty.
The International Monetary Fund executive board, according to a summary of its recent evaluation of the Nepalese economy, noted that overall growth in gross domestic product surged from 4.5 percent in 1998-1999 to 6.5 percent in
Output is expected to slip back to 5.5 percent in the 2000-2001 fiscal year in response to higher oil prices and a decline in tourism earnings.
Consumer price inflation was held to under four percent in 2000-2001, with abundant food supplies offsetting higher energy costs.
"Macroeconomic developments in Nepal during the past two years have been broadly satisfactory, despite difficult political circumstances," IMF directors said.
They identified the main challenges facing authorities as ensuring strong growth on a sustainable basis and reducing poverty, which the IMF said is "widespread."
Nine of every 10 Nepalese live in rural areas and depend on subsistence farming.
The directors welcomed the government's reform agenda, which aims to remove structural impediments to growth, namely inadequate provision of public services, weak governance and an ineffective financial sector. |
