Nepal Economy

Is Nepal a wealthy country?

A mix of challenges and opportunities can characterize Nepal's economy.

Agriculture Dominance: Agriculture remains a significant sector, employing a large portion of the population and contributing substantially to the GDP. However, it faces challenges such as low productivity, dependence on monsoon rains, and limited access to modern technology.

Tourism: Nepal's natural beauty, including the Himalayas and Mount Everest, attracts tourists worldwide. Tourism plays a crucial role in the economy, providing employment opportunities and foreign exchange earnings. However, political instability and natural disasters like the 2015 earthquake have impacted tourism.

Remittances: Nepal receives substantial remittances from its citizens working abroad, particularly in countries like India, the Middle East, and Southeast Asia. Remittances contribute significantly to household incomes and the overall economy, but concerns about their sustainability and long-term impact on domestic productivity exist.

Infrastructure Development: Nepal faces challenges in infrastructure development, including transportation, energy, and telecommunications. Investment in infrastructure is essential for economic growth and improving the country's connectivity with regional and global markets.

Political Instability: Political instability and frequent changes in government have been a persistent challenge for Nepal. This instability can deter foreign investment, hinder policy implementation, and contribute to economic uncertainty.

Trade and Economic Integration: Nepal's geographic location between India and China presents trade and economic integration opportunities. However, trade imbalances, border disputes, and transit challenges can hinder Nepal's ability to capitalize on its strategic position fully.

Development Challenges: Nepal faces numerous development challenges, including poverty, inequality, access to education and healthcare, and environmental degradation. Addressing these challenges requires sustained investment in human capital, social infrastructure, and sustainable development initiatives.

Nepal Economy Data

What is the GDP of Nepal?

Currency Name and Code Nepalese Rupee (NPR)
GDP - Gross Domestic Product (PPP) $110,720,000,000 (USD)
GDP - official exchange rate $24,880,000,000 (USD)
GDP - real growth rate 7.9%
GDP Per Capita $3,417.00 (USD)
GDP by Sector- agriculture 27%
GDP by Sector- Industry 13.5%
GDP by Sector- services 59.5%
GDP - composition, by end use household consumption: 77.2%

government consumption: 12.4%

investment in fixed capital: 24.4%

investment in inventories: 12.3%

exports of goods and services: 9.9%

imports of goods and services: -36.2%
Population Below Poverty Line 25.2%
Inflation Rate 8.6%
Labor Force 16,810,000
Labor Force By Occupation- agriculture 69%
Labor Force By Occupation- industry 12%
Labor Force By Occupation- services 19%
Unemployment Rate 3%
Fiscal Year 16 July - 15 July
Annual Budget $5,925,000,000 (USD)
Taxes and other revenues - percent of GDP 23.8%
Major Industries tourism, carpet, textile; small rice, jute, sugar, and oilseed mills; cigarette; cement and brick production
Industrial Growth Rate 12.4%
Agriculture Products rice, corn, wheat, sugarcane, root crops; milk, water buffalo meat
Exchange Rate per US Dollar Nepalese rupee (NPR)
Child Labor - % of children ages 5-14 34%
Child Labor - # of children ages 5-14 2,467,549
Commercial Bank Prime Lending Rate 9%

Labor Force by Occupation- As reported by Nepal

All Countries
Afghanistan Akrotiri Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burma Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Chad Chile China Christmas Island Clipperton Island Cocos (Keeling) Islands Colombia Comoros Congo, Democratic Republic of the Congo, Republic of the Cook Islands Coral Sea Islands Costa Rica Cote d’Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Dhekelia Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia, The Gaza Strip Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Jan Mayen Japan Jersey Jordan Kazakhstan Kenya Kiribati Korea, North Korea, South Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Macedonia Northern Mariana Islands Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena, Ascension, and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka Sudan Sudan, South Suriname Svalbard Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United States (US) Uruguay Uzbekistan Vanuatu Venezuela Vietnam Virgin Islands Wake Island Wallis and Futuna West Bank Western Sahara World Yemen Zambia Zimbabwe