Overview: Nepal is among the poorest and least developed countries in the world with a per capita income of only $170. Agriculture is the mainstay of the economy, providing a livelihood for over 90% of the population, and accounting for 60% of GDP and about 75% of exports. Industrial activity is limited, and what there is involves the processing of agricultural produce (jute, sugarcane, tobacco, and grain). Apart from agricultural land and forests, the only other exploitable natural resources are mica, hydropower, and tourism. Despite considerable investment in the agricultural sector, production in the 1980s has not kept pace with the population growth of 2.7%, which has led to a reduction in exportable surpluses and balance-of-payments difficulties.

GDP: $3.1 billion, per capita $170; real growth rate 7.1% (FY88)

Inflation rate (consumer prices): 10.9% (FY88)

Unemployment rate: 5%; underemployment estimated at 25-40% (1987)

Budget: revenues $388 million; expenditures $813 million, including capital expenditures of $553 million (FY89)

Exports: $139 million (f.o.b., FY87), but does not include unrecorded border trade with India; @m5commodities--clothing, carpets, leather goods, grain; @m5partners--India 43%, US 26%, UK 10%, other Europe 17%

Imports: $507 million (c.i.f., FY87); @m5commodities--petroleum products 20%, fertilizer 11%, machinery 10%; @m5partners--India 40%, Europe 13%, Japan 13%, US 2%

External debt: $1.1 billion (December 1988)

Industrial production: growth rate 10.4% (FY88 est.)

Electricity: 203,000 kW capacity; 530 million kWh produced, 30 kWh per capita (1988)

Industries: small rice, jute, sugar, and oilseed mills; cigarette, textiles, cement, brick; tourism

Agriculture: rice, corn, wheat, sugarcane, oilseeds; an illegal producer of cannabis for the international drug trade

Aid: NA

Currency: Nepalese rupee (plural--rupees); 1 Nepalese rupee (NR) = 100 paisa

Exchange rates: Nepalese rupees (NRs) per US$1--25.250 (January 1989), 23.289 (1988), 21.819 (1987), 21.230 (1986), 18.246 (1985)

Fiscal year: 16 July-15 July

NOTE: The information regarding Nepal on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Nepal Economy 1989 information contained here. All suggestions for corrections of any errors about Nepal Economy 1989 should be addressed to the CIA.