Economic Status

Economic Status

Growth in FY2017 (ended 30 June 2017) was higher than expected as consumption picked up in response to rising income and as public investment strengthened. Inflation was lower than projected, and the current account moved into deficit, as expected, with a wider trade deficit and lower remittances. For FY2018, this Update retains the Asian Development Outlook 2017 growth projection but anticipates slightly lower inflation and a larger current account deficit. Recent flooding is unlikely to affect growth, which could improve if infrastructure development accelerates. Mobilizing domestic revenue remains a priority.