IMF Sees Early Signs of Economic Recovery in Nepal

The growth in imports, improvement in tax collections and a rise in public investment were cited as among the reasons in a statement issued by the UN financial agency following an 11-day visit to Nepal.

"Credit growth is recovering while remaining appropriately below nominal GDP growth," the statement read. "Inflation continued to decelerate to around 3.6 percent by mid-July, partially reflecting favorable commodity prices and weak demand. International reserves continued to rise, underpinned by robust remittances, recovering tourism and still subdued imports."

The statement stressed the need for Nepal to accelerate the reform momentum to put the economy on a path toward sustainable, strong and inclusive growth, including better execution of public investment and generating more domestic revenues.

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