Nepal Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Nepal is among the 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 less than a 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 has signed trade and investment agreements with India, China, and other countries, but political uncertainty and a difficult business climate have hampered foreign investment. The United States and Nepal signed a $500 million Millennium Challenge Corporation Compact in September 2017 which will expand Nepal’s electricity infrastructure and help maintain transportation infrastructure.

 

Massive earthquakes struck Nepal in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Although political gridlock and lack of capacity have hindered post-earthquake recovery, government-led reconstruction efforts have progressively picked up speed, although many hard hit areas still have seen little assistance. Additional challenges to Nepal's growth include its landlocked geographic location, inconsistent electricity supply, and underdeveloped transportation infrastructure.

Real GDP (purchasing power parity)

$110.72 billion (2020 est.)

$113.08 billion (2019 est.)

$106.03 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

7.9% (2017 est.)

0.6% (2016 est.)

3.3% (2015 est.)

Real GDP per capita

$3,800 (2020 est.)

$4,000 (2019 est.)

$3,800 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$24.88 billion (2017 est.)

Inflation rate (consumer prices)

4.5% (2017 est.)

9.9% (2016 est.)

GDP - composition, by sector of origin

agriculture: 27% (2017 est.)

industry: 13.5% (2017 est.)

services: 59.5% (2017 est.)

GDP - composition, by end use

household consumption: 78% (2017 est.)

government consumption: 11.7% (2017 est.)

investment in fixed capital: 33.8% (2017 est.)

investment in inventories: 8.7% (2017 est.)

exports of goods and services: 9.8% (2017 est.)

imports of goods and services: -42% (2017 est.)

Agricultural products

rice, vegetables, sugar cane, potatoes, maize, wheat, buffalo milk, milk, fruit, mangoes/guavas

Industries

tourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production

Industrial production growth rate

12.4% (2017 est.)

Labor force

16.81 million (2017 est.)

note: severe lack of skilled labor

Labor force - by occupation

agriculture: 69%

industry: 12%

services: 19% (2015 est.)

Unemployment rate

3% (2017 est.)

3.2% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 20.5%

male: 19.2%

female: 22.5% (2017 est.)

Population below poverty line

25.2% (2011 est.)

Gini Index coefficient - distribution of family income

32.8 (2010 est.)

47.2 (2008 est.)

Household income or consumption by percentage share

lowest 10%: 3.2%

highest 10%: 29.5% (2011)

Budget

revenues: 5.925 billion (2017 est.)

expenditures: 5.945 billion (2017 est.)

Budget surplus (+) or deficit (-)

-0.1% (of GDP) (2017 est.)

Public debt

26.4% of GDP (2017 est.)

27.9% of GDP (2016 est.)

Taxes and other revenues

23.8% (of GDP) (2017 est.)

Fiscal year

16 July - 15 July

Current account balance

-$93 million (2017 est.)

$1.339 billion (2016 est.)

Exports

$1.79 billion (2020 est.) note: data are in current year dollars

$2.73 billion (2019 est.) note: data are in current year dollars

$2.68 billion (2018 est.) note: data are in current year dollars

Exports - partners

India 68%, United States 10% (2019)

Exports - commodities

palm oil, clothing and apparel, carpets, soybean oil, flavored water (2019)

Imports

$10.68 billion (2020 est.) note: data are in current year dollars

$13.83 billion (2019 est.) note: data are in current year dollars

$14.65 billion (2018 est.) note: data are in current year dollars

Imports - partners

India 70%, China 15% (2019)

Imports - commodities

refined petroleum, iron, broadcasting equipment, natural gas, rice (2019)

Reserves of foreign exchange and gold

$9.091 billion (31 December 2017 est.)

$8.506 billion (31 December 2016 est.)

Debt - external

$5.849 billion (31 December 2017 est.)

$4.321 billion (31 December 2016 est.)

Exchange rates

Nepalese rupees (NPR) per US dollar -

104 (2017 est.)

107.38 (2016 est.)

107.38 (2015 est.)

102.41 (2014 est.)

99.53 (2013 est.)

NOTE: The information regarding Nepal on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Nepal 2022 information contained here. All suggestions for corrections of any errors about Nepal 2022 should be addressed to the CIA or the source cited on each page.