Nepal Economy - 2003
SOURCE: 2003 CIA WORLD FACTBOOK
Economy - overview: Nepal is among the poorest and least developed countries in the world with 42% of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 40% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Textile and carpet production, accounting for about 80% of foreign exchange earnings in recent years, contracted in 2001-02 due to the overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers. Security concerns in the wake of the Maoist conflict and the September 11, 2001 terrorist attacks in the US have led to a decrease in tourism, another key source of foreign exchange. Since 1991, the government has been moving forward with economic reforms, e.g., by reducing business licenses and registration requirements to simplify investment procedures, reducing subsidies, privatizing state industries, and laying off civil servants. Nepal has considerable scope for exploiting its potential in hydropower and tourism, areas of recent foreign investment interest. Prospects for foreign trade or investment in other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, and its susceptibility to natural disaster. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.
NOTE: The information regarding Nepal on this page is re-published from the 2003 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Guinea Geography 2003 information contained here. All suggestions for corrections of any errors about Nepal Economy 2003 should be addressed to the CIA.