Nepal Economy Profile 2012

Economy - overview

Nepal is among the poorest and least developed countries in the world, with almost 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 about 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)

$37.74 billion (2011 est.)
$36.52 billion (2010 est.)
$34.88 billion (2009 est.)
note: data are in 2011 US dollars

GDP (official exchange rate)

$18.3 billion (2011 est.)

GDP - real growth rate

3.5% (2011 est.)
4.6% (2010 est.)
4.4% (2009 est.)

GDP - per capita (PPP)

$1,300 (2011 est.)
$1,300 (2010 est.)
$1,200 (2009 est.)
note: data are in 2011 US dollars

GDP - composition by sector

agriculture: 34.9%
industry: 15%
services: 50.1% (2010 est.)

Population below poverty line

30.9% (2011)

Labor force

18 million
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.)
42% (2004 est.)

Household income or consumption by percentage share

lowest 10%: 3.2%
highest 10%: 29.5% (2011)

Distribution of family income - Gini index

47.2 (2008)
36.7 (1996)

Budget

revenues: $3.9 billion
expenditures: $5.3 billion (FY11)

Taxes and other revenues

21.3% of GDP (FY11)

Budget surplus (+) or deficit (-)

-7.7% of GDP (FY11 est.)

Inflation rate (consumer prices)

7.8% (2011 est.)
10% (2010 est.)

Central bank discount rate

6% (31 December 2010 est.)
6.5% (31 December 2009 est.)

Commercial bank prime lending rate

7.5% (31 December 2011 est.)
8% (31 December 2010 est.)

Stock of narrow money

$3.693 billion (31 December 2011 est.)
$3.175 billion (31 December 2010 est.)

Stock of money

$2.53 billion (31 July 2009)
$2.106 billion (31 December 2008)

Stock of quasi money

$7.49 billion (1 April 2009)
$6.99 billion (31 December 2008)

Stock of broad money

$11.88 billion (31 December 2011 est.)
$10.34 billion (31 December 2010 est.)

Stock of domestic credit

$9.226 billion (31 December 2011 est.)
$8.069 billion (31 December 2010 est.)

Market value of publicly traded shares

$4.492 billion (31 July 2011 est.)
$4.843 billion (31 December 2010)
$5.485 billion (31 December 2009 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

1.4% (FY10)

Electricity - production

3.156 billion kWh (2010 est.)

Electricity - production by source

fossil fuel: 8.5%
hydro: 91.5%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

4.833 billion kWh (2010 est.)

Electricity - exports

0 kWh (2010 est.)

Electricity - imports

70 million kWh (2010 est.)

Oil - production

0 bbl/day (2010 est.)

Oil - consumption

20,000 bbl/day (2010 est.)

Oil - exports

0 bbl/day (2010 est.)

Oil - imports

13,740 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2011 est.)

Natural gas - production

0 cu m (2010 est.)

Natural gas - consumption

0 cu m (2009 est.)

Natural gas - exports

0 cu m (2010 est.)

Natural gas - imports

0 cu m (2010 est.)

Natural gas - proved reserves

0 cu m (1 January 2011 est.)

Current Account Balance

-$437.9 million (2010 est.)
$537 million (2009 est.)

Exports

$896 million (2011 est.)
$901.9 million (2010 est.)

Exports - commodities

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

Exports - partners

India 66.4%, US 6.8%, Germany 4.8%, Bangladesh 5.4% (2009)

Imports

$5.4 billion (2011 est.)
$5.016 billion (2010 est.)

Imports - commodities

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

Imports - partners

India 65.2%, China 11.5% (2009)

Debt - external

$4.5 billion (2009)
$3.285 billion (2008)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Exchange rates

Nepalese rupees (NPR) per US dollar -
83.31 (2011 est.)
73.15 (2010 est.)
77.44 (2009)
65.21 (2008)
70.35 (2007)

Fiscal year

16 July -