The International Monetary Fund (IMF) has projected that Nepal’s economic growth will decline to 3.8 percent in the current fiscal year 2012-13, citing poor monsoon for agriculture and slower services activity and remittance growth. The economic growth was recorded at 4.6 percent in the last fiscal year 2011/12. “Spillover effects from declining growth in India (through lower export demand, weaker inward investment, and possibly less remittances), and the dampening effect of continued political uncertainty will also present further challenges to growth in Nepal,” according to IMF report released on Monday. The IMF also said that the inflation is also on the rise and upward pressure on prices may increase in line with projected developments in India over the next few months. The IMF also stressed on the lack of political consensus that has adversely affected the macroeconomic management. Higher growth and progress in poverty reduction could be enabled by political consensus, policy stability, an easier labor environment, and more effective use of ext

The International Monetary Fund (IMF) has projected that Nepal’s economic growth will decline to 3.8 percent in the current fiscal year 2012-13, citing poor monsoon for agriculture and slower services activity and remittance growth.
The economic growth was recorded at 4.6 percent in the last fiscal year 2011/12.
“Spillover effects from declining growth in India (through lower export demand, weaker inward investment, and possibly less remittances), and the dampening effect of continued political uncertainty will also present further challenges to growth in Nepal,” according to IMF report released on Monday.
The IMF also said that the inflation is also on the rise and upward pressure on prices may increase in line with projected developments in India over the next few months.
The IMF also stressed on the lack of political consensus that has adversely affected the macroeconomic management. Higher growth and progress in poverty reduction could be enabled by political consensus, policy stability, an easier labor environment, and more effective use of external support, said the Fund.