Lingering effects of the global economic crisis are exposing the structural weaknesses of Nepal’s economy, with real GDP growth expected to slow down by 3 percent 2009-2010, according to the International Monetary Fund. Near-term risks to the country’s economy include low remittances, high imports, political instability, capital flight and heightened vulnerabilities of the financial sector. In the conclusion of it latest review of Nepal’s economy, the IMF executive board urged Nepal to tackle long-standing structural problems. The board identified business climate, infrastructure, governance and labor relations as some of the areas the country can improve.

    About the author

    • Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.