Global InformationEconomy of Nepal information
 Kathmandu, the financial centre and capital of Nepal | |
| Currency | Nepalese rupee (NPR, रू) |
|---|---|
Fiscal year | 16 July - 15 July |
Trade organizations | WTO, SCO and SAFTA |
Country group |
|
| Statistics | |
| Population |  29,164,578 (2021)[3] |
| GDP |
|
GDP growth |
|
GDP per capita |
|
GDP by sector |
|
Inflation (CPI) | 7.76%(April 2023)[4] |
Population below poverty line |
|
Gini coefficient | 32.8 medium (2010)[9] |
Human Development Index |
|
Labour force |
|
Labour force by occupation |
|
| Unemployment | 11.47% (2021)[6] |
Main industries | tourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production[6] |
| External | |
| Exports | $2.69 billion (2021)[6] |
Export goods | clothing, pulses, carpets, textiles, juice, jute goods[6] |
Main export partners |
|
| Imports |  $15.17 billion (2021)[6] |
Import goods | petroleum products, machinery and equipment, gold, electrical goods, medicine[6] |
Main import partners |
|
FDI stock |
|
Gross external debt | $11 billion (31 December 2020)[6] |
| Public finances | |
Government debt | 41.38% of GDP (2021/22)[14] |
Budget balance | −1% (of GDP) (2022 est.)[6] |
| Revenues | 10.925 billion (2017 est.)[6] |
| Expenses | 15.945 billion (2017 est.)[6] |
Foreign reserves | $13.69 billion (Jan 2024)[15] |
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars. | |
The economy of Nepal is developing category and largely dependent on agriculture and remittances.[6] Until the mid-20th century Nepal was an isolated pre-industrial society, which entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or civil service. The country has, however, made progress toward sustainable economic growth since the 1950s. The country was opened to economic liberalization, leading to economic growth and improvement in living standards when compared to the past. The biggest challenges faced by the country in achieving higher economic development are the frequent changes in political leadership, as well as corruption.
Nepal has consistently been ranked as one of the poorest countries in the world.[16][17][18]
Nepal has used a series of five-year plans in an attempt to make progress in economic development. It completed its ninth economic development plan in 2002; its currency has been made convertible, and 17 state enterprises have been privatised. Foreign aid to Nepal accounts for more than half of the development budget. Government priorities over the years have been result in the development of transportation and communication facilities, agriculture, and industry. Since 1975, improved government administration and rural development efforts have been emphasised.
Agriculture remains Nepal's principal economic activity, employing about 65% of the population and providing 31.7% of GDP. Only about 20% of the total area is cultivable; another 40.7% is forested (i.e., covered by shrubs, pastureland and forest); most of the rest is mountainous. Fruits and vegetables (apples, pears, tomatoes, various salad greens, peach, nectarine, potatoes), as well as rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas.
GDP is heavily dependent on remittances (9.1%) of foreign workers. Subsequently, economic development in social services and infrastructure in Nepal has not made dramatic progress. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria had been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by road and an expanding highway network. The capital was almost out of fuel and supplies, due to a crippling general strike in southern Nepal on 17 February 2008.[19]
Major towns are connected to the capital by telephone and domestic air services. The export-oriented carpet and garment industries have grown rapidly in recent years. Together, they account for approximately 70% of the country's merchandise exports.
The Cost of Living Index in Nepal is comparatively lower than many countries but not the least. The quality of life has declined to a much less desirous value in recent years.[20] In the 2021 Global Hunger Index, Nepal ranks 76th out of the 116 countries with sufficient data to calculate 2021 GHI scores. With a score of 19.1, Nepal has a level of hunger that is moderate.[21] Nepal has the worst road infrastructure in Asia.[22]
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 1 July 2020.
- ^ "Population, total - Nepal". Central_Bureau_of_Statistics_(Nepal). 24 March 2023. Retrieved 29 March 2023.
- ^ a b c d e "World Economic Outlook Database, April 2021". IMF.org. International Monetary Fund. Retrieved 10 April 2021.
- ^ "International Monetary Fund". www.img.org. International Monetary Fund. Retrieved 22 May 2023.
- ^ a b c d e f g h i j k l m n o p q r "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 1 November 2020.
- ^ "Poverty headcount ratio at national poverty lines (% of population) - Nepal". xinhuanet.net. Xinhuanet. Retrieved 18 January 2020.
- ^ "Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population) - Nepal". data.worldbank.org. World Bank. Retrieved 1 July 2020.
- ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 25 January 2019.
- ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
- ^ "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 22 May 2020.
- ^ "Labor force, total". World Bank. Retrieved 2 November 2019.
- ^ "Employment to population ratio, 15+, total (%) (national estimate)". World Bank. Retrieved 14 September 2019.
- ^ "Nepal's Debt". Retrieved 1 January 2023.
- ^ "Nepal's Forex Reserves". Retrieved 12 January 2024.
- ^ "Climbing Higher: Toward a Middle-Income Nepal".
- ^ "10 Causes of Poverty in Nepal - Friends of WPC Nepal". 29 May 2020.
- ^ "Poverty in Nepal, Hunger and food shortages, INF".
- ^ Kathmandu nearly out of fuel, Nepal says. CNN. 17 February 2008. Retrieved 2008-04-13.
- ^ Cost of Living Index in Nepal - Statistics & Graphs of Nepalese Citizen's Economic Power. Retrieved 10 January 2014.
- ^ "Nepal". Global Hunger Index (GHI) - peer-reviewed annual publication designed to comprehensively measure and track hunger at the global, regional, and country levels. Retrieved 27 May 2022.
- ^ "Best and worst Asian countries for road quality". 22 February 2018.