It also forecasted that inflation will drop from 26 percent in 2024 to 12 percent in 2025.
According to the ‘2024 Economic and Social Survey of Asia and the Pacific’ released by the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP), political upheaval had a negative impact on business and consumer sentiment and a big flood damaged agricultural productivity.
The economy was said to have restored some macroeconomic stability in 2023 as a result of a mid-year agreement with the International Monetary Fund and extra assistance from Saudi Arabia, China, and the United Arab Emirates.
The study indicated that in an attempt to bring stability back, the economy was undergoing budgetary reforms, such as reducing subsidies to the electrical sector. Additionally, it stated that taxes gaps were moderate despite the low tax rates, though they might not be small if expressed as a percentage of current tax revenues as opposed to GDP.
