Macroeconomic Update: Nepal (March 2017)
Nepal's GDP is forecast to grow between 5.2% to 6.2% in FY2017, and inflation to range between 6.0% and 6.5%. This report analyzes Nepal’s mid-year performance in real, fiscal, monetary, and external sectors for FY2017.
Robust revenue generation but poor capital expenditure resulted in a fiscal surplus as of the first half of FY2017. The widening trade deficit and a slowdown in remittance inflows have resulted in a current account deficit as of mid-year of FY2017.
The Issue Focus section reviews key regulatory and operational aspects for businesses in the country, specially foreign investment. Nepal lags behind many peer countries in terms of attracting foreign investment. To turn around the situation, it could introduce further reforms to address the de facto practices and procedures governing foreign investment and introduce policy reforms to improve the operational environment for domestic and foreign firms.
- Executive Summary
- Macroeconomic Update
- Issue Focus: Investment Climate in Nepal: Progress and Challenges