Policy dedicated to flattening the virus curve recommended
KATHMANDU, Oct 22: The International Monetary Fund (IMF) has warned that rising COVID-19 cases in Nepal pose downside risks to the country’s economic growth.
Responding to Republica’s questions at an online press briefing by the IMF, Jonathan D Ostry, acting director at the IMF’s Asia and Pacific Department, said that the continuous spike in COVID-19 cases could hit the recovery.
The statement of the Fund’s senior staff comes in the wake of a surge in COVID-19 cases in recent days after the government lifted a four-month nationwide lockdown in July as well as other containment measures introduced to combat the spread of coronavirus.
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In its regional economic outlook released on Wednesday, the IMF forecasts Nepal’s economy to have grown by zero percent in the last fiscal year 2019/20. The economy is projected to grow by 2.5 percent in the current fiscal year 2020/21, according to the IMF.
“The data on Nepal in our projections are based on Fiscal Year, and obviously, the pandemic has straggled two fiscal years and the numbers show the impact of the pandemic across these two years,” said Ostry. “The cases are still rising in Nepal, and to that degree, I would say that there are some downside risks associated with the health side,” he added.
He also recommended a policy aimed at flattening the virus curve to make sure that the health of Nepalis is protected and the health risks of the population are contained.
“On the role of policy, it has to, as elsewhere, be firmly dedicated to flattening the virus curve, to making sure that the health of Nepalese are protected, and the health risks of the population are contained. And that again, a very targeted, proactive approach to redress those who are suffering the most. Those at the bottom are the order of the day,” he added.
What did IMF’s Jonathan D. Ostry, Acting Director at the IMF’s Asia and Pacific Department, say about Nepal?
The data on Nepal in our projections are based on Fiscal Year, and obviously, the pandemic has straggled two fiscal years and the numbers that were in the question really show the impact of the pandemic across these two years. It's worth noting, as the questioner does, that the cases are still rising in Nepal and to that degree, I would say that there are some downside risks associated with the health side.
On the role of policy, it has to, as elsewhere, be firmly dedicated to flattening the virus curve, to making sure that the health of Nepalese are protected, and the health risks of the population are contained. And that again, very targeted with a proactive approach to redress those who are suffering the most. Those at the bottom are the order of the day.
On remittances, these have been reasonably volatile recently and the future for remittances I think will depend a lot on the source countries including India, Malaysia, and the GCC countries. So, I think what we will see for remittances into Nepal will depend a lot on the growth outlook in where the Nepalese are working abroad.
