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Nepal Economy Profile 2018

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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 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost two-thirds of the population but accounting for only 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)$78.55 billion (2017 est.)
$73.07 billion (2016 est.)
$72.77 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$24.07 billion (2016 est.)
GDP - real growth rate7.5% (2017 est.)
0.4% (2016 est.)
3.3% (2015 est.)
GDP - per capita (PPP)$2,700 (2017 est.)
$2,500 (2016 est.)
$2,600 (2015 est.)
note: data are in 2017 dollars
Gross national saving42.1% of GDP (2017 est.)
40% of GDP (2016 est.)
44% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 76.2%
government consumption: 11.7%
investment in fixed capital: 33.8%
investment in inventories: 10.5%
exports of goods and services: 9.8%
imports of goods and services: -42% (2017 est.)
GDP - composition by sectoragriculture: 27%
industry: 13.5%
services: 51.5% (2017 est.)
Population below poverty line25.2% (2011 est.)
Labor force15.6 million
note: severe lack of skilled labor (2014 est.)
Labor force - by occupationagriculture: 69%
industry: 12%
services: 19% (2014 est.)
Unemployment rate3.3% (2013 est.)
2.7% (2008 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: $5.954 billion
expenditures: $5.974 billion (2017 est.)
Taxes and other revenues24.7% of GDP (FY2016 est.)
Budget surplus (+) or deficit (-)-0.1% of GDP (FY2016 est.)
Public debt27.3% of GDP (2016 est.)
25.2% of GDP (2015 est.)
Inflation rate (consumer prices)4.5% (2017 est.)
9.9% (2016 est.)
Central bank discount rate7% (30 October 2016)
7% (30 October 2015)
Commercial bank prime lending rate9% (31 December 2017 est.)
8.9% (31 December 2016 est.)
Stock of narrow money$5.834 billion (31 December 2017 est.)
$4.871 billion (31 December 2016 est.)
Stock of broad money$27.12 billion (31 December 2017 est.)
$22.19 billion (31 December 2016 est.)
Stock of domestic credit$21.93 billion (31 December 2017 est.)
$17.98 billion (31 December 2016 est.)
Market value of publicly traded shares$14.03 billion (30 April 2016 est.)
$11.81 billion (31 October 2015 est.)
$9.574 billion (31 October 2014 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 rate10.9% (2017 est.)
Current Account Balance-$88 million (2017 est.)
$1.339 billion (2016 est.)
Exports$818.7 million (2017 est.)
$761.6 million (2016 est.)
Exports - commoditiesclothing, pulses, carpets, textiles, juice, jute goods
Exports - partnersIndia 56.6%, US 11.5%, Turkey 4% (2016)
Imports$11.03 billion (2017 est.)
$8.757 billion (2016 est.)
Imports - commoditiespetroleum products, machinery and equipment, gold, electrical goods, medicine
Imports - partnersIndia 70.1%, China 10.3% (2016)
Reserves of foreign exchange and gold$8.668 billion (31 December 2017 est.)
$8.506 billion (31 December 2016 est.)
Debt - external$5.948 billion (31 December 2017 est.)
$4.321 billion (31 December 2016 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 -
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 January 20, 2018

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