Overview of Nepal: Economy

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. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths 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 feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

GDP (purchasing power parity):

$41.22 billion (2012 est.)

country comparison to the world: 102

$39.4 billion (2011 est.)
$37.93 billion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate):

$19.42 billion (2012 est.)

GDP - real growth rate:

4.6% (2012 est.)
country comparison to the world: 71
3.9% (2011 est.)
4.8% (2010 est.)

GDP - per capita (PPP):

$1,300 (2012 est.)
country comparison to the world: 207
$1,300 (2011 est.)
$1,300 (2010 est.)
note: data are in 2012 US dollars

GDP - composition, by end use:

household consumption: 76%
government consumption: 10.7%
investment in fixed capital: 20%
investment in inventories: 14.9%
exports of goods and services: 10%
imports of goods and services: -33.4%
(2012 est.)

GDP - composition, by sector of origin:

agriculture: 38.1%
industry: 15.3%
services: 46.6% (2012 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:

3% (2012 est.)
country comparison to the world: 87

Labor force:

18 million
country comparison to the world: 35
note: severe lack of skilled labor (2009 est.)

Labor force - by occupation:

agriculture: 75%
industry: 7%
services: 18% (2010 est.)

Unemployment rate:

46% (2008 est.)


country comparison to the world: 192
42% (2004 est.)

Population below poverty line:

25.2% (2011 est.)

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: 100
47.2 (2008 est.)

Budget:

revenues: $3.5 billion
expenditures: $4.7 billion (FY11/12)

Taxes and other revenues:

18% of GDP (FY11/12)
country comparison to the world: 177

Budget surplus (+) or deficit (-):

-6.2% of GDP (FY11/12)
country comparison to the world: 179

Fiscal year:

16 July - 15 July

Inflation rate (consumer prices):

9.5% (2012 est.)
country comparison to the world: 196
9.5% (2011 est.)

Central bank discount rate:

6% (31 December 2010 est.)
country comparison to the world: 51
6.5% (31 December 2009 est.)

Commercial bank prime lending rate:

8% (31 December 2012 est.)
country comparison to the world: 116
8% (31 December 2011 est.)

Stock of narrow money:

$3.105 billion (31 December 2012 est.)
country comparison to the world: 115
$2.723 billion (31 December 2011 est.)

Stock of broad money:

$12.12 billion (31 December 2011 est.)
country comparison to the world: 98
$12.14 billion (31 December 2010 est.)

Stock of domestic credit:

$11.88 billion (31 December 2012 est.)
country comparison to the world: 95
$10.67 billion (31 December 2011 est.)

Market value of publicly traded shares:

$4.529 billion (31 December 2011 est.)
country comparison to the world: 84
$4.843 billion (31 December 2010)
$5.485 billion (31 December 2009 est.)

Current account balance:

$93 million (2012 est.)
country comparison to the world: 53
$49 million (2011 est.)

Exports:

$1.066 billion (2012 est.)
country comparison to the world: 154
$998.9 million (2011 est.)

Exports - commodities:

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

Exports - partners:

India 55.7%, US 10.1%, Germany 4.4% (2012)

Imports:

$5.92 billion (2012 est.)
country comparison to the world: 121
$5.665 billion (2011 est.)

Imports - commodities:

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

Imports - partners:

India 51%, China 34.5% (2012)

Reserves of foreign exchange and gold:

$3.631 billion (31 December 2011 est.)
country comparison to the world: 102
$2.925 billion (2010 est.)

Debt - external:

$3.956 billion (31 December 2011 est.)
country comparison to the world: 129
$3.673 billion (31 December 2010 est.)

Stock of direct foreign investment - at home:

$NA

Stock of direct foreign investment - abroad:

$NA

Exchange rates:

Nepalese rupees (NPR) per US dollar -
85.197 (2012 est.)
74.02 (2011 est.)
73.16 (2010 est.)
77.44 (2009)
65.21 (2008)

(Source: www.cia.gov)