Tuesday, October 13, 2020

IMF forecasts zero per cent economic growth last fiscal year

Nepal is growing at zero per cent in the last fiscal year as Covid-19 continues to wreak havoc on the economy, according to the latest forecast of the International Monetary Fund (IMF).

“Nepal’s economic growth remained flat in the last fiscal year 2019-20,” the World Economic Outlook (WEO) released today by the IMF reads.

Though, the World Bank has forecast 0.6 per cent economic growth, and Central Bureau of Statistics (CBS) has forecast 2.27 per cent economic growth, the IMF has downgraded Nepal’s growth forecast to zero percent for the last fiscal year. The IMF growth projection of Nepal is far lower than the government’s target to achieve seven per cent of growth in the current fiscal year.

The IMF has, however, projects that Nepal’s economy would grow by 2.5 per cent in the current fiscal year 2020-21. 

The IMF has also projected a deep recession in 2020. “Global growth is projected to be -4.4 per cent, an upward revision of 0.8 percentage points compared to its June update,” the report reads.

“The upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partly by downgrades in some emerging and developing economies,” said the IMF’s chief economist Gita Gopinath.

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