The economic architecture of Nepal is substantial, anchored by a Gross Domestic Product (GDP) of approximately $40.91B
2023
. This places it as the 99th largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $1.38K
2023
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $160.16B, offering a clearer picture of the population's domestic purchasing power. The economy is navigating a period of modest growth, recorded at 2.0%
2023
, while managing moderate inflation, with a CPI of 7.1%.
2023
On the global stage, Nepal's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 34.7% of GDP and exports at 7.0%
2023
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 0.18% of the economy
2023
. This performance positions the country 160th globally out of 186 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $10.4B annually
2023
. Fiscal capacity is adequate, with tax collections representing 17.5% of GDP, supporting core state functions.
2021
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $1,430
2023
, ranking the nation 158th out of 190. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. The country confronts significant labor market challenges, evidenced by a high unemployment rate of 10.7%.
2024
A key feature of the workforce is its concentration in the services sector, which accounts for 21.2% of total employment
2023
. Despite its economic standing, poverty remains a salient issue, with 20.3% of the population living below the national poverty line
2022
. The country achieves a relatively equitable distribution of income, reflected in a low Gini index of 30.0.
2022
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 519.951 kg of oil equivalent
2022
, a metric that often correlates with industrial activity and living standards. The country is at the forefront of the global green transition, with renewable sources constituting a remarkable 73.7% of total final energy consumption
2021
. This commitment places it 167th among 190 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 56.83K tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

Balancing growth, inflation, and employment remains the core challenge for economic stewardship.

Trade & Investment Profile

The economy is largely insular and consumption-driven, relying heavily on imports and showing limited integration into global export markets.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

A global leader in the green transition, the country leverages its strong commitment to renewable energy as a key economic and diplomatic advantage.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.