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Nepal Economy Profile

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Economy - overview

Nepal is among the least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost two-thirds of the population but accounting for less than a third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain.

Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity. Nepal has signed trade and investment agreements with India, China, and other countries, but political uncertainty and a difficult business climate have hampered foreign investment. The United States and Nepal signed a $500 million Millennium Challenge Corporation Compact in September 2017 which will expand Nepal’s electricity infrastructure and help maintain transportation infrastructure.

Massive earthquakes struck Nepal in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Although political gridlock and lack of capacity have hindered post-earthquake recovery, government-led reconstruction efforts have progressively picked up speed, although many hard hit areas still have seen little assistance. Additional challenges to Nepal's growth include its landlocked geographic location, inconsistent electricity supply, and underdeveloped transportation infrastructure.

GDP (purchasing power parity)$97.749 billion (2019 est.)

$91.362 billion (2018 est.)

$85.624 billion (2017 est.)

note: data are in 2017 dollars
GDP (official exchange rate)$24.88 billion (2017 est.)
GDP - real growth rate7.9% (2017 est.)

0.6% (2016 est.)

3.3% (2015 est.)
GDP - per capita (PPP)$3,417 (2019 est.)

$3,253 (2018 est.)

$3,099 (2017 est.)

note: data are in 2017 dollars
Gross national saving48.9% of GDP (2019 est.)

48.2% of GDP (2018 est.)

46.7% of GDP (2017 est.)
GDP - composition, by end usehousehold consumption: 78% (2017 est.)

government consumption: 11.7% (2017 est.)

investment in fixed capital: 33.8% (2017 est.)

investment in inventories: 8.7% (2017 est.)

exports of goods and services: 9.8% (2017 est.)

imports of goods and services: -42% (2017 est.)
GDP - composition by sectoragriculture: 27% (2017 est.)

industry: 13.5% (2017 est.)

services: 59.5% (2017 est.)
Ease of Doing Business Index scoresOverall score: 63.2 (2020)

Starting a Business score: 81.7 (2020)

Trading score: 85.1 (2020)

Enforcement score: 46 (2020)
Population below poverty line25.2% (2011 est.)
Labor force16.81 million (2017 est.)

note: severe lack of skilled labor
Labor force - by occupationagriculture: 69%

industry: 12%

services: 19% (2015 est.)
Unemployment rate3% (2017 est.)

3.2% (2016 est.)
Unemployment, youth ages 15-24total: 21.4%

male: 19.7%

female: 23.9% (2017 est.)
Household income or consumption by percentage sharelowest 10%: 3.2%

highest 10%: 29.5% (2011)
Distribution of family income - Gini index32.8 (2010 est.)

47.2 (2008 est.)
Budgetrevenues: 5.925 billion (2017 est.)

expenditures: 5.945 billion (2017 est.)
Taxes and other revenues23.8% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-0.1% (of GDP) (2017 est.)
Public debt26.4% of GDP (2017 est.)

27.9% of GDP (2016 est.)
Inflation rate (consumer prices)4.5% (2017 est.)

9.9% (2016 est.)
Agriculture - productsrice, vegetables, sugar cane, potatoes, maize, wheat, buffalo milk, milk, fruit, mangoes/guavas
Industriestourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production
Industrial production growth rate12.4% (2017 est.)
Current Account Balance-$93 million (2017 est.)

$1.339 billion (2016 est.)
Exports$818.7 million (2017 est.)

$761.6 million (2016 est.)
Exports - commoditiespalm oil, clothing and apparel, carpets, soybean oil, flavored water (2019)
Exports - partnersIndia 68%, United States 10% (2019)
Imports$10 billion (2017 est.)

$8.764 billion (2016 est.)
Imports - commoditiesrefined petroleum, iron, broadcasting equipment, natural gas, rice (2019)
Imports - partnersIndia 70%, China 15% (2019)
Reserves of foreign exchange and gold$9.091 billion (31 December 2017 est.)

$8.506 billion (31 December 2016 est.)
Debt - external$5.849 billion (31 December 2017 est.)

$4.321 billion (31 December 2016 est.)
Exchange ratesNepalese rupees (NPR) per US dollar -

104 (2017 est.)

107.38 (2016 est.)

107.38 (2015 est.)

102.41 (2014 est.)

99.53 (2013 est.)
Fiscal year16 July - 15 July

Source: CIA World Factbook
This page was last updated on September 18, 2021

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