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Nepal Economy Profile 2014

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Economy - overviewNepal is among the poorest and 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 22-25% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population and accounting for a little over one-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, but political uncertainty and a difficult business climate have hampered foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013.
GDP (purchasing power parity)$42.06 billion (2013 est.)
$40.57 billion (2012 est.)
$38.7 billion (2011 est.)
note: data are in 2013 US dollars
GDP (official exchange rate)$19.34 billion (2013 est.)
GDP - real growth rate3.6% (2013 est.)
4.9% (2012 est.)
3.4% (2011 est.)
GDP - per capita (PPP)$1,500 (2013 est.)
$1,500 (2012 est.)
$1,400 (2011 est.)
note: data are in 2013 US dollars
GDP - composition, by end usehousehold consumption: 81.2%
government consumption: 10%
investment in fixed capital: 21.6%
investment in inventories: 14.6%
exports of goods and services: 10.3%
imports of goods and services: -37.7%
(2013 est.)
GDP - composition by sectoragriculture: 36.8%
industry: 14.5%
services: 48.7% (2013 est.)
Population below poverty line25.2% (2011 est.)
Labor force16 million
note: severe lack of skilled labor (2011 est.)
Labor force - by occupationagriculture: 75%
industry: 7%
services: 18% (2010 est.)
Unemployment rate46% (2008 est.)
42% (2004 est.)
Household income or consumption by percentage sharelowest 10%: 3.2%
highest 10%: 29.5% (2011)
Distribution of family income - Gini index32.8 (2010)
47.2 (2008 est.)
Budgetrevenues: $3.3 billion
expenditures: $3.9 billion (FY12/13)
Taxes and other revenues17.1% of GDP (FY12/13)
Budget surplus (+) or deficit (-)-3.1% of GDP (FY12/13)
Public debt28% of GDP (FY11/12)
Inflation rate (consumer prices)NA% (2013 est.)
9.5% (2012 est.)
Central bank discount rate6% (31 December 2010 est.)
6.5% (31 December 2009 est.)
Commercial bank prime lending rate9% (31 December 2013 est.)
8% (31 December 2012 est.)
Stock of narrow money$3.553 billion (31 December 2013 est.)
$3.104 billion (31 December 2012 est.)
Stock of broad money$11.49 billion (31 December 2013 est.)
$11.71 billion (31 December 2012 est.)
Stock of domestic credit$13.46 billion (31 December 2013 est.)
$11.88 billion (31 December 2012 est.)
Market value of publicly traded shares$4.16 billion (31 December 2012 est.)
$3.849 billion (31 December 2011)
$5.235 billion (31 December 2010 est.)
Agriculture - productspulses, rice, corn, wheat, sugarcane, jute, root crops; milk, water buffalo meat
Industriestourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production
Industrial production growth rate1.5% (2013 est.)
Current Account Balance$648 million (2013 est.)
$283.9 million (2012 est.)
Exports$1.06 billion (2013 est.)
$1.004 billion (2012 est.)
Exports - commoditiesclothing, pulses, carpets, textiles, juice, pashima, jute goods
Exports - partnersIndia 93.9%, Bangladesh 4%, Italy 0.4% (2013 est.)
Imports$6.329 billion (2013 est.)
$5.951 billion (2012 est.)
Imports - commoditiespetroleum products, machinery and equipment, gold, electrical goods, medicine
Imports - partnersIndia 79.4%, South Korea 3.1%, China 2.5% (2013 est.)
Reserves of foreign exchange and gold$6.574 billion (15 January 2014 est.)
$5.833 billion (15 July 2013 est.)
Debt - external$3.956 billion (31 December 2011 est.)
$3.673 billion (31 December 2010 est.)
Stock of direct foreign investment - at home$103 million
Stock of direct foreign investment - abroad$NA
Exchange ratesNepalese rupees (NPR) per US dollar -
87.96 (2013 est.)
85.2 (2012 est.)
73.16 (2010 est.)
77.44 (2009)
65.21 (2008)
Fiscal year16 July - 15 July

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of August 23, 2014