Page last updated on June 20, 2014

Economy - overview:
Nepal is among the poorest and 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 22-25% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population and accounting for a little over one-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, but political uncertainty and a difficult business climate have hampered foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013.

GDP (purchasing power parity):
$42.06 billion (2013 est.)
country comparison to the world: 104
$40.57 billion (2012 est.)
$38.7 billion (2011 est.)
note: data are in 2013 US dollars
[see also: GDP country ranks ]

GDP (official exchange rate):
$19.34 billion (2013 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3.6% (2013 est.)
country comparison to the world: 90
4.9% (2012 est.)
3.4% (2011 est.)
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$1,500 (2013 est.)
country comparison to the world: 205
$1,500 (2012 est.)
$1,400 (2011 est.)
note: data are in 2013 US dollars
[see also: GDP - per capita country ranks ]

GDP - composition, by end use:
household consumption: 81.2%
government consumption: 10%
investment in fixed capital: 21.6%
investment in inventories: 14.6%
exports of goods and services: 10.3%
imports of goods and services: -37.7%
(2013 est.)

GDP - composition, by sector of origin:
agriculture: 36.8%
industry: 14.5%
services: 48.7% (2013 est.)

Agriculture - products:
pulses, rice, corn, wheat, sugarcane, jute, root crops; milk, water buffalo meat

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

Industrial production growth rate:
1.5% (2013 est.)
country comparison to the world: 136
[see also: Industrial production growth rate country ranks ]

Labor force:
16 million
country comparison to the world: 39
note: severe lack of skilled labor (2011 est.)
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 75%
industry: 7%
services: 18% (2010 est.)

Unemployment rate:
46% (2008 est.)
country comparison to the world: 194
42% (2004 est.)
[see also: Unemployment rate country ranks ]

Population below poverty line:
25.2% (2011 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 29.5% (2011)

Distribution of family income - Gini index:
32.8 (2010)
country comparison to the world: 102
47.2 (2008 est.)
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $3.3 billion
expenditures: $3.9 billion (FY12/13)

Taxes and other revenues:
17.1% of GDP (FY12/13)
country comparison to the world: 181
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3.1% of GDP (FY12/13)
country comparison to the world: 125
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
28% of GDP (FY11/12)
country comparison to the world: 126
[see also: Public debt country ranks ]

Fiscal year:
16 July - 15 July

Inflation rate (consumer prices):
NA% (2013 est.)
9.5% (2012 est.)
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
6% (31 December 2010 est.)
country comparison to the world: 54
6.5% (31 December 2009 est.)
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
9% (31 December 2013 est.)
country comparison to the world: 112
8% (31 December 2012 est.)
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$3.553 billion (31 December 2013 est.)
country comparison to the world: 112
$3.104 billion (31 December 2012 est.)
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$11.49 billion (31 December 2013 est.)
country comparison to the world: 101
$11.71 billion (31 December 2012 est.)
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$13.46 billion (31 December 2013 est.)
country comparison to the world: 89
$11.88 billion (31 December 2012 est.)
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$4.16 billion (31 December 2012 est.)
country comparison to the world: 82
$3.849 billion (31 December 2011)
$5.235 billion (31 December 2010 est.)
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$648 million (2013 est.)
country comparison to the world: 50
$283.9 million (2012 est.)
[see also: Current account balance country ranks ]

Exports:
$1.06 billion (2013 est.)
country comparison to the world: 158
$1.004 billion (2012 est.)
[see also: Exports country ranks ]

Exports - commodities:
clothing, pulses, carpets, textiles, juice, pashima, jute goods

Exports - partners:
India 93.9%, Bangladesh 4%, Italy 0.4% (2013 est.)

Imports:
$6.329 billion (2013 est.)
country comparison to the world: 119
$5.951 billion (2012 est.)
[see also: Imports country ranks ]

Imports - commodities:
petroleum products, machinery and equipment, gold, electrical goods, medicine

Imports - partners:
India 79.4%, South Korea 3.1%, China 2.5% (2013 est.)

Reserves of foreign exchange and gold:
$6.574 billion (15 January 2014 est.)
country comparison to the world: 85
$5.833 billion (15 July 2013 est.)
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$3.956 billion (31 December 2011 est.)
country comparison to the world: 127
$3.673 billion (31 December 2010 est.)
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$103 million
country comparison to the world: 107
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$NA
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Nepalese rupees (NPR) per US dollar -
87.96 (2013 est.)
85.2 (2012 est.)
73.16 (2010 est.)
77.44 (2009)
65.21 (2008)