An Overview of the Economy of Nepal

Source: CIA World Factbook, retrieved April 30, 2010.

Nepal is among the poorest and least developed countries in the world, with almost one-third of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for about one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. During the global recession of 2009, remittances from foreign workers abroad increased 47% to $2.8 billion while tourist arrivals only decreased 1% compared to the previous year. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its technological backwardness, landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

GDP (purchasing power parity):

$33.25 billion (2009 est.)
country comparison to the world: 102
$31.76 billion (2008 est.)
$30.16 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$12.47 billion (2009 est.)

GDP - real growth rate:

4.7% (2009 est.)
country comparison to the world: 30
5.3% (2008 est.)
3.3% (2007 est.)

GDP - per capita (PPP):

$1,200 (2009 est.)
country comparison to the world: 207
$1,100 (2008 est.)
$1,100 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 35%
industry: 16%
services: 49% (FY09 est.)

Labor force:

18 million
country comparison to the world: 33
note: severe lack of skilled labor (2009 est.)

Labor force - by occupation:

agriculture: 76%
industry: 6%
services: 18% (2004 est.)

Unemployment rate:

46% (2008 est.)
country comparison to the world: 191
42% (2004 est.)

Population below poverty line:

24.7% (2008)

Household income or consumption by percentage share:

lowest 10%: 6%
highest 10%: 40.6% (2008)

Distribution of family income - Gini index:

47.2 (2008)
country comparison to the world: 34
36.7 (1996)

Budget:

revenues: $2.3 billion
expenditures: $3.7 billion (FY10)

Inflation rate (consumer prices):

13.2% (September 2009 est.)
country comparison to the world: 208
7.7% (2008 est.)

Central bank discount rate:

6.5% (31 December 2009)
country comparison to the world: 64
6.5% (31 December 2008)

Commercial bank prime lending rate:

Data not available.

Stock of money:

$2.53 billion (31 July 2009)
country comparison to the world: 74
$2.106 billion (31 December 2008)

Stock of quasi money:

$7.49 billion (1 April 2009)
country comparison to the world: 64
$6.99 billion (31 December 2008)

Stock of domestic credit:

$6.11 billion (31 December 2009 est.)
country comparison to the world: 86
$5.556 billion (31 December 2008)

Market value of publicly traded shares:

$5.721 billion (31 December 2009 est.)
country comparison to the world: 84
$5.5 billion (31 December 2008)
$4.909 billion (31 December 2007)

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:

1.8% (FY08)
country comparison to the world: 59

Electricity - production:

2.6 billion kWh (2009 est.)
country comparison to the world: 128

Electricity - consumption:

2.243 billion kWh (2007 est.)
country comparison to the world: 132

Electricity - exports:

0 kWh (2009 est.)

Electricity - imports:

213 million kWh (2008 est.)

Oil - production:

0 bbl/day (2009 est.)
country comparison to the world: 155

Oil - consumption:

18,000 bbl/day (2008 est.)
country comparison to the world: 129

Oil - exports:

0 bbl/day (2007 est.)
country comparison to the world: 178

Oil - imports:

16,920 bbl/day (2007 est.)
country comparison to the world: 120

Oil - proved reserves:

0 bbl (1 January 2009 est.)
country comparison to the world: 149

Natural gas - production:

0 cu m (2009 est.)
country comparison to the world: 146

Natural gas - consumption:

0 cu m (2009 est.)
country comparison to the world: 145

Natural gas - exports:

0 cu m (2009 est.)
country comparison to the world: 143

Natural gas - imports:

0 cu m (2009 est.)
country comparison to the world: 106

Natural gas - proved reserves:

0 cu m (1 January 2009 est.)
country comparison to the world: 151

Current account balance:

$537 million (2009)
country comparison to the world: 47
$241 million (2008)

Exports:

$907 million (2008)
country comparison to the world: 153
$868 million (2008)

Exports - commodities:

clothing, pulses, carpets, textiles, juice, pashima, jute goods

Exports - partners:

India 54.8%, US 9.7%, Bangladesh 9.2%, Germany 4.7% (2008)

Imports:

$3.626 billion (2009)
country comparison to the world: 127
$3.229 billion (2008)

Imports - commodities:

petroleum products, machinery and equipment, gold, electrical goods, medicine

Imports - partners:

India 55.2%, China 13.4%, Singapore 2% (2008)

Debt - external:

$4.5 billion (2009)
country comparison to the world: 104
$3.285 billion (2008)

Stock of direct foreign investment - at home:

Data not available.

Stock of direct foreign investment - abroad:

Data not available.

Exchange rates:

Nepalese rupees (NPR) per US dollar - 77.44 (2009), 65.21 (2008), 70.35 (2007), 72.446 (2006), 72.16 (2005)