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Introduction - Nepal:
Location - Nepal:
People - Nepal:
Government - Nepal:
Economy - Nepal:

Economy overview

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 38% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Security concerns relating to the Maoist conflict have led to a decrease in tourism, a key source of foreign exchange. Nepal has considerable scope for exploiting its potential in hydropower and tourism, areas of recent foreign investment interest. Prospects for foreign trade or investment in other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, its civil strife, and its susceptibility to natural disaster.

Gdp purchasing power parity

$41.18 billion (2006 est.)

Gdp official exchange rate

$6.948 billion (2006 est.)

Gdp real growth rate

1.9% (2006 est.)

Gdp per capita ppp

$1,500 (2006 est.)

Gdp composition by sector

agriculture: 38%
industry: 20%
services: 42% (FY05/06 est.)

Labor force

11.11 million
note: severe lack of skilled labor (2006 est.)

Labor force by occupation

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

Unemployment rate

42% (2004 est.)

Population below poverty line

31% (FY03/04)

Household income or consumption by percentage share

lowest 10%: 2.6%
highest 10%: 39.1% (2003-2004)

Distribution of family income gini index

37.7 (FY04/05)

Inflation rate consumer prices

8.6% (November 2006 est.)


revenues: $1.153 billion
expenditures: $1.927 billion; including capital expenditures of $NA (FY06/07)

Agriculture products

rice, corn, wheat, sugarcane, jute, root crops; milk, water buffalo meat


tourism, carpet, textile; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production

Industrial production growth rate

2.2% (FY05/06)

Electricity production

2.511 billion kWh (2006)

Electricity consumption

1.96 billion kWh (2006)

Electricity exports

101 million kWh (2006)

Electricity imports

266 million kWh (2006)

Oil production

0 bbl/day (2005 est.)

Oil consumption

11,550 bbl/day (2006 est.)

Oil exports

NA bbl/day

Oil imports

11,530 bbl/day (2006 est.)

Oil proved reserves

0 bbl

Natural gas production

0 cu m (2006 est.)

Natural gas consumption

0 cu m (2006 est.)


$822 million f.o.b.; note - does not include unrecorded border trade with India (2005 est.)

Exports commodities

carpets, clothing, leather goods, jute goods, grain

Exports partners

India 59.3%, US 14%, Germany 5.9% (2006)


$2 billion f.o.b. (2005 est.)

Imports commodities

gold, machinery and equipment, petroleum products, fertilizer

Imports partners

India 49%, China 12.4%, UAE 11.7%, Saudi Arabia 5.2%, Kuwait 4.4% (2006)

Debt external

$3.07 billion (March 2006)

Economic aid recipient

$533 million (FY04/05)

Currency code

Nepalese rupee (NPR)

Exchange rates

Nepalese rupees per US dollar - 72.446 (2006), 72.16 (2005), 73.674 (2004), 76.141 (2003), 77.877 (2002)

Communications - Nepal:
Transportation - Nepal:
Military - Nepal:
This page was last updated on 16 September, 2007
Source: CIA >>>

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