Nepal's Economic Landscape

Nepal, a low-income economy in South Asia, is navigating through various economic challenges and opportunities. Despite its struggles with trade and tourism setbacks due to COVID-19, the country is experiencing increased stability through post-conflict fiscal federalism. In 2021, Nepal's central government revenues stood at an estimated $7.625 billion, while expenditures reached $9.1 billion, highlighting a significant budget deficit. The country's labor force in 2024 is projected to be 8.435 million, emphasizing the importance of sustainable employment strategies. Additionally, remittances have become a crucial economic component, contributing to 25.3% of GDP in 2023 and expected to rise to 33.1% by 2024. Nepal's strategic engagement with China is fostering economic growth, although environmental vulnerabilities like earthquakes remain a concern. As Nepal continues to evolve economically, its resilience and adaptability are paramount to future success.

Budget

revenues

$7.625 billion (2021 est.)

expenditures

$9.1 billion (2021 est.)

Exports

Exports 2022

$2.106 billion (2022 est.)

Exports 2023

$2.258 billion (2023 est.)

Exports 2024

$3.744 billion (2024 est.)

Imports

Imports 2022

$15.227 billion (2022 est.)

Imports 2023

$13.877 billion (2023 est.)

Imports 2024

$17.777 billion (2024 est.)

Industries

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

Labor force

8.435 million (2024 est.)

Public debt

Public debt 2021

39.9% of GDP (2021 est.)

Remittances

Remittances 2022

22% of GDP (2022 est.)

Remittances 2023

25.3% of GDP (2023 est.)

Remittances 2024

33.1% of GDP (2024 est.)

Exchange rates

Currency

Nepalese rupees (NPR) per US dollar -

Exchange rates 2020

118.345 (2020 est.)

Exchange rates 2021

118.134 (2021 est.)

Exchange rates 2022

125.199 (2022 est.)

Exchange rates 2023

132.115 (2023 est.)

Exchange rates 2024

133.727 (2024 est.)

Debt - external

Debt - external 2023

$5.719 billion (2023 est.)

Economic overview

a low-income economy in South Asia; increased stability from post-conflict fiscal federalism; trade and tourism negatively impacted by COVID-19; growing current account deficits; economy vulnerable to environmental issues like earthquakes; expanding relations and investments from China

Unemployment rate

Unemployment rate 2022

10.9% (2022 est.)

Unemployment rate 2023

10.7% (2023 est.)

Unemployment rate 2024

10.8% (2024 est.)

Exports - partners

India 67%, USA 12%, Germany 3%, China 2%, UK 2% (2023)

Imports - partners

India 71%, China 17%, UAE 3%, Singapore 2%, Germany 1% (2023)

Real GDP per capita

Real GDP per capita 2022

$4,800 (2022 est.)

Real GDP per capita 2023

$4,900 (2023 est.)

Real GDP per capita 2024

$5,000 (2024 est.)

Real GDP growth rate

Real GDP growth rate 2022

5.6% (2022 est.)

Real GDP growth rate 2023

2% (2023 est.)

Real GDP growth rate 2024

3.7% (2024 est.)

Agricultural products

rice, vegetables, potatoes, sugarcane, maize, wheat, bison milk, milk, mangoes/guavas, bananas (2023)

Exports - commodities

knotted carpets, garments, flat-rolled iron, synthetic fibers, palm oil (2023)

Imports - commodities

refined petroleum, natural gas, garments, iron reductions, broadcasting equipment (2023)

Current account balance

Current account balance 2022

-$3.088 billion (2022 est.)

Current account balance 2023

$146.66 million (2023 est.)

Current account balance 2024

$1.954 billion (2024 est.)

Taxes and other revenues

17.5% (of GDP) (2021 est.)

GDP (official exchange rate)

$42.914 billion (2024 est.)

GDP - composition, by end use

household consumption

86.3% (2024 est.)

government consumption

7.4% (2024 est.)

investment in inventories

6.1% (2024 est.)

investment in fixed capital

24.3% (2024 est.)

exports of goods and services

7.6% (2024 est.)

imports of goods and services

-32.9% (2024 est.)

Population below poverty line

20.3% (2022 est.)

Inflation rate (consumer prices)

Inflation rate (consumer prices) 2021

4.1% (2021 est.)

Inflation rate (consumer prices) 2022

7.7% (2022 est.)

Inflation rate (consumer prices) 2023

7.1% (2023 est.)

Industrial production growth rate

0.1% (2024 est.)

Real GDP (purchasing power parity)

Real GDP (purchasing power parity) 2022

$141.546 billion (2022 est.)

Real GDP (purchasing power parity) 2023

$144.352 billion (2023 est.)

Real GDP (purchasing power parity) 2024

$149.643 billion (2024 est.)

Youth unemployment rate (ages 15-24)

male

19.3% (2024 est.)

total

20.8% (2024 est.)

female

23.6% (2024 est.)

Reserves of foreign exchange and gold

Reserves of foreign exchange and gold 2021

$9.639 billion (2021 est.)

Reserves of foreign exchange and gold 2022

$9.319 billion (2022 est.)

Reserves of foreign exchange and gold 2023

$12.456 billion (2023 est.)

GDP - composition, by sector of origin

industry

11.4% (2024 est.)

services

55.2% (2024 est.)

agriculture

21.9% (2024 est.)

Household income or consumption by percentage share

lowest 10%

3.7% (2022 est.)

highest 10%

24.2% (2022 est.)

Gini Index coefficient - distribution of family income

Gini Index coefficient - distribution of family income 2022

30 (2022 est.)

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