December 01, 2001

KATHMANDU: Gross domestic product growth will fall to three percent this year from a robust 5.3 last year while inflation will shoot up to 5.5 from 3.4 percent, a prediction of the IMF said. This is largely because of weak performance in the agriculture sector and declining tourist arrivals.

The IMF made the prediction after a delegation’s eight day visit to the kingdom last month. The IMF will not immediately release concessional loans for  the poverty reduction and growth facility.

“If sound macro economic policies are maintained and if adequate progress is made with structural reforms in the financial sector and in the management of public resources, the IMF could soon proceed with the support for the policies through PRGF for Nepal,” an announcement said.