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)

Overview of Nepal: Government

Country name:

Conventional long form:
Federal Democratic Republic of Nepal
Conventional short form: Nepal
Local long form: Sanghiya Loktantrik Ganatantra Nepal
Local short form: Nepal

Government type:

Federal democratic republic

Capital:

Name: Kathmandu
Geographic coordinates: 27 43 N, 85 19 E
Time difference: UTC+5.75 (10.75 hours ahead of Washington, DC during Standard Time)

Administrative divisions:

14 zones (anchal, singular and plural); Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti

Independence:

1768 (unified by Prithvi Narayan SHAH)

National holiday:

Republic Day, 29 May

Constitution:

15 January 2007 (interim Constitution); note - in April 2008, the Constituent Assembly (CA) was elected as an interim parliament to draft and promulgate a new constitution by May 2010; the deadline was extended four times, mostly recently until May 2012 when the CA was dissolved without completing a new constitution

Legal system:

English common law and Hindu legal concepts

International law organization participation:

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President Ram Baran YADAV (since 23 July 2008); Vice President Paramananda JHA (since 23 July 2008)

head of government: note: on 14 March 2013, the chief justice of Nepal's Supreme Court, Khil Raj REGMI, was sworn in as Chairman of the Interim Council of Ministers for Elections to lead an interim government and charged with holding Constituent Assembly elections by December 2013

cabinet: cabinet was formed in August-September 2011 by a majority coalition made up of the United Communist Party of Nepal-Maoist, Madhesi People's Rights Forum-Democratic, Madhesi People's Rights Forum-Republic, Madhesi People's Rights Forum-Nepal, Terai-Madhes Democratic Party, and several smaller parties

elections: president elected by Parliament; term extends until the new constitution is promulgated; president elected on 21 July 2008; date of next election NA
election results: Ram Baran YADAV elected president by the Constituent Assembly in a second round of voting on 21 July 2008; Ram Baran YADAV 308, Ram Jaja Prasad SINGH 282

Legislative branch:

note: in May 2012 Prime Minister Baburam BHATTARAI dissolved the previous unicameral Constituent Assembly
unicameral Constituent Assembly (601 seats; 240 members elected by direct popular vote, 335 by proportional representation, and 26 appointed by the Cabinet (Council of Ministers)

elections: last held on 10 April 2008; note - the Constituent Assembly failed to draft a new constitution by the 27 May 2012 deadline; as of early 2013, the parties were in negotiations to hold elections for a new Constituent Assembly

election results: percent of vote by party - CPN-M 38%, NC 19%, CPN-UML 18%, Madhesi People's Right Forum-Nepal 9%, other 11%; seats by party - CPN-M 229, NC 115, CPN-UML 108, Madhesi People's Rights Forum-Nepal 54, Terai Madhes Democratic Party 21, other smaller parties 74; note - 26 seats filled by the new Cabinet are included in the totals above

Judicial branch:

highest court(s): Supreme Court (consists of the chief justice and up to 14 judges
note - Nepal's judiciary was restructured under its 2007 Interim Constitution

judge selection and term of office: the Supreme Court chief justice appointed by the prime minister on the recommendation of the Constitutional Council; other judges are appointed by the prime minister on the recommendation of the Judicial Council; judges serve until age 65

subordinate courts: appellate and district courts

Political parties and leaders:

Chure Bhawar Rastriya Ekata Party [Himalaya Bhakta PRADHANGA]
Communist Party of Nepal-Marxist Leninist or CPN-ML [C.P. MAINALI]
Communist Party of Nepal-Marxist Leninist Samaibadi [Jaqat Bahadur BOGATI]
Communist Party of Nepal-Maoist or CPN-M [Mohan BAIDYA, also known as KIRAN]
Communist Party of Nepal-Unified [Raj Singh SHRIS]
Communist Party of Nepal-United [Chandra Dev JOSHI]
Communist Party of Nepal-Unified Marxist-Leninist or CPN-UML [Jhalanath KHANAL]
Dalit Janajati Party [Vishwendraman PASHWAN]
Federal Democratic National Forum [Khagendra MAKHAIM]
Federal Democratic National Forum - Tharuhat [Rukmini CHAUDHARY]
Federal Democratic National Party [Ravindra THING]
Federal Socialist Party [Ashok RAI]
Federal Sadbhayana Party [Anil JHAL]
Janta Dal United [Biswonath Prasad AGRAWAL]
Madhesi People's Rights Forum-Democratic [Bijay Kumar GACHHADAR]
Madhesi People's Rights Forum-Nepal [Upendra YADAV]
Madhesi People's Rights Forum-Republic [Raj Kishore YADAV]
National Madhes Socialist Party [Sharat Singh BHANDARI]
Nepal Loktantrik Samajbadi Dal [Laxmi Lal CHAUDBARY]
Nepal Pariwar Dal [Eknath DHAKAL]
Nepal Workers and Peasants Party [Narayan Man BIJUKCHHE]
Nepali Congress or NC [Sushil KOIRALA]
Nepali Janata Dal [Hari Charan SAH]
Newa Rastriya Party [Keshav Man SHAKYA]
Rastriya Janamorcha [Chitra Bahadur K.C.]
Rastriya Janamukti Party [Malwar Singh THAPA]
Rastriya Janashakti Party or RJP [Surya Bahadur THAPA]
Rastriya Prajantantra Party [Pashupati Shumsher RANA]
Rastriya Prajantantra Party Nepal [Kamal THAPA]
Sadbhavana Party [Rajendra MAHATO]
Sadbhavana Party-Anandi Devi [Sarita GIRI]
Samajbadi Prajatantrik Janata Party Nepal [Prem Bahadur SINGH]
Social Democratic Party [Chaitanya SUBBA]
Terai Madhes Democratic Party [Mahantha THAKUR]
Terai Madhes Democratic Party-Nepal [Mahendra YADAVI]
Unified Communist Party of Nepal (Maoist) [Pushpa Kamal DAHAL, also known as PRACHANDA]

Political pressure groups and leaders:

other: small armed groups along the southern border with India; a variety of groups advocating regional autonomy for individual ethnic groups

International organization participation:

ADB, BIMSTEC, CD, CP, FAO, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, MINUSTAH, MONUSCO, NAM, OPCW, SAARC, SACEP, UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNISFA, UNMIL, UNMISS, UNMIT, UNOCI, UNTSO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Diplomatic representation in the US:

chief of mission: Ambassador Shankar Prasad SHARMA
chancery: 2131 Leroy Place NW, Washington, DC 20008
telephone: [1] (202) 667-4550
FAX: [1] (202) 667-5534
consulate(s) general: New York

Diplomatic representation from the US:

chief of mission: Ambassador Peter W. BODDE
embassy: Maharajgunj, Kathmandu
mailing address: use embassy street address
telephone: [977] (1) 400-7200
FAX: [977] (1) 400-7272

Flag description:

Red with a blue border around the unique shape of two overlapping right triangles; the sma
ller, upper triangle bears a white stylized moon and the larger, lower triangle displays a white 12-pointed sun; the color red represents the rhododendron (Nepal's national flower) and is a sign of victory and bravery, the blue border signifies peace and harmony; the two right triangles are a combination of two single pennons (pennants) that originally symbolized the Himalaya Mountains while their charges represented the families of the king (upper) and the prime minister, but today they are understood to denote Hinduism and Buddhism, the country's two main religions; the moon represents the serenity of the Nepalese people and the shade and cool weather in the Himalayas, while the sun depicts the heat and higher temperatures of the lower parts of Nepal; the moon and the sun are also said to express the hope that the nation will endure as long as these heavenly bodies
note: Nepal is the only country in the world whose flag is not rectangular or square

National symbol(s):

Rhododendron blossom

National anthem:

name: "Sayaun Thunga Phool Ka" (Hundreds of Flowers)

New National Anthem of Nepal

lyrics/music: Pradeep Kumar RAI/Ambar GURUNG
note: adopted 2007; after the abolition of the monarchy in 2006, a new anthem was required because of the previous anthem's praise for the king

(Source: www.cia.gov)