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Nepal Economy Profile 2016

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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 29% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost 70% of the population and accounting for about 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. Nepal and India signed trade and investment agreements in 2014 that increase Nepal’s hydropower potential, but political uncertainty and a difficult business climate have hampered foreign investment.

Nepal was hit by massive earthquakes in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Political gridlock in the past several years and recent public protests, predominantly in the southern Tarai region, have hindered post-earthquake recovery and prevented much-needed economic reform. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, and underdeveloped transportation infrastructure.
GDP (purchasing power parity)$70.09 billion (2015 est.)
$67.81 billion (2014 est.)
$64.35 billion (2013 est.)
note: data are in 2015 US dollars
GDP (official exchange rate)$21.36 billion (2015 est.)
GDP - real growth rate3.4% (2015 est.)
5.4% (2014 est.)
4.1% (2013 est.)
GDP - per capita (PPP)$2,500 (2015 est.)
$2,400 (2014 est.)
$2,300 (2013 est.)
note: data are in 2015 US dollars
Gross national saving33.9% of GDP (2015 est.)
33.3% of GDP (2014 est.)
33.1% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 77.2%
government consumption: 12.4%
investment in fixed capital: 24.4%
investment in inventories: 12.3%
exports of goods and services: 9.9%
imports of goods and services: -36.2% (2015 est.)
GDP - composition by sectoragriculture: 31.7%
industry: 15.1%
services: 53.2% (FY2014/15 est.)
Population below poverty line25.2% (2011 est.)
Labor force15.2 million
note: severe lack of skilled labor (2013 est.)
Labor force - by occupationagriculture: 69%
industry: 12%
services: 19% (2014 est.)
Unemployment rate46% (2008 est.)
42% (2004 est.)
Unemployment, youth ages 15-24total: 3.5%
male: 4.2%
female: 2.9% (2008 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: $4.257 billion
expenditures: $4.203 billion (2015 est.)
Taxes and other revenues19.9% of GDP (2015 est.)
Budget surplus (+) or deficit (-)0.2% of GDP (2015 est.)
Public debt30% of GDP (FY 2012/13 est.)
32% of GDP (2013 est.) (FY11/12)
Inflation rate (consumer prices)7.2% (2015 est.)
9% (2014 est.)
Central bank discount rate8% (31 July 2015)
8% (31 July 2014)
Commercial bank prime lending rate9.8% (31 December 2015 est.)
10.6% (31 December 2014 est.)
Stock of narrow money$4.002 billion (31 December 2015 est.)
$3.567 billion (31 December 2014 est.)
Stock of broad money$17.83 billion (31 December 2015 est.)
$16.36 billion (31 December 2014 est.)
Stock of domestic credit$14.33 billion (31 December 2015 est.)
$13.97 billion (31 December 2014 est.)
Market value of publicly traded shares$11.81 billion (31 October 2015 est.)
$9.574 billion (31 October 2014)
$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 rate2.6% (2015 est.)
Current Account Balance$1.067 billion (2015 est.)
$908 million (2014 est.)
Exports$924.2 million (2015 est.)
$1.078 billion (2014 est.)
Exports - commoditiesclothing, pulses, carpets, textiles, juice, jute goods
Exports - partnersIndia 61.2%, US 9.4% (2015)
Imports$8.56 billion (2015 est.)
$7.72 billion (2014 est.)
Imports - commoditiespetroleum products, machinery and equipment, gold, electrical goods, medicine
Imports - partnersIndia 61.4%, China 15.4% (2015)
Reserves of foreign exchange and gold$71.83 billion (30 July 2015 est.)
$6.191 billion (30 July 2014 est.)
Debt - external$3.727 billion (31 December 2014 est.)
$3.833 billion (31 December 2013 est.)
Stock of direct foreign investment - at home$103 million (31 July 2013 est.)
Stock of direct foreign investment - abroad$NA
Exchange ratesNepalese rupees (NPR) per US dollar -
102.4 (2015 est.)
97.6 (2014 est.)
99.53 (2013 est.)
85.2 (2012 est.)
74.02 (2011 est.)
Fiscal year16 July - 15 July

Source: CIA World Factbook
This page was last updated on October 8, 2016

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