Economy of Nepal - Wikipedia Economy of Nepal Economy of Nepal Nepal Rastra Bank in Kathmandu Currency 1 Nepalese rupee ( NPR ) = 100 paisa Fiscal year 16 July - 15 July Trade organizations WTO and SAFTA Statistics GDP $27 billion ( Nominal ) ( 2018 est. ) GDP growth 4.96 % ( 2018 ) GDP per capita Nominal : 989USD ( 2018 ) PPP : $2700 ( 2018 est. ) GDP by sector agriculture ( 35 % ), industry ( 20 % ), services ( 45 % ) ( 2010 est. ) Inflation ( CPI ) 3.8 % ( April 2017. ) Population below poverty line 25.2 % ( 2010. ) Main industries Tourism, garment, food and beverages, metal manufactures, herbs. Ease - of - doing - business rank 107th ( 2017 ) External Exports $ 1.2 Billion ( 2016 ) f.o.b. ; note - does not include unrecorded border trade with India ( 2013 ) Export goods carpets, clothing, leather goods, jute goods, grain, herbs, tea, coffee, steel, Cement, Business Processing Outsourcing, Software, Information Technology, Furniture, Cardamoms, Cloths etc Main export partners India 61.2 % United States 9.4 % ( 2015 ) Imports $ 7.2 billion f.o.b. ( 2016 ) Import goods Petroleum Products, Gold, Machinery. Main import partners India 61.4 % China 15.4 % ( 2015 ) Public finances Revenues $ 6 billion ( FY 2013 ) Expenses $ 7 billion ( FY 2013 ) Main data source : CIA World Fact Book All values, unless otherwise stated, are in US dollars. Economic development in Nepal has been complicated and affected by the constant change in political scenarios which has ranged from monarchy to being ruled by the Communist party in present context. An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and opened the country to economic liberalization leading to economic growth and improvement in living standards than compared to the past. The biggest challenges faced by the country in achieving higher economic development are the frequent changes in political leadership as well as corruption. Nepal has used a series of five - year plans in an attempt to make progress in economic development. It completed its ninth economic development plan in 2002 ; its currency has been made convertible, and 17 state enterprises have been privatised. Foreign aid to Nepal accounts for more than half of the development budget. Government priorities over the years have been the development of transportation and communication facilities, agriculture, and industry. Since 1975, improved government administration and rural development efforts have been emphasised. Agriculture remains Nepal 's principal economic activity, employing about 65 % of the population and providing 31.7 % of GDP. Only about 20 % of the total area is cultivable ; another 40.7 % is forested ( i.e. covered by shurbs, pastureland & forest ) ; most of the rest is mountainous. Fruits and vegetables ( apples, pears, tomatoes, various salads, peach, nectarine, potatoes ), as well as rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food - deficient hill areas. GDP is heavily dependent on remittances ( 29.1 % ) of foreign workers. Subsequently, economic development in social services and infrastructure in Nepal has not made dramatic progress. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria had been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by road and an expanding highway network. The capital was almost out of fuel and transport of supplies caused by a crippling general strike in southern Nepal on 17 February 2008. Major towns are connected to the capital by telephone and domestic air services. The export - oriented carpet and garment industries have grown rapidly in recent years and together now account for approximately 70 % of merchandise exports. The Cost of Living Index in Nepal is comparatively lower than many countries but not the least. The quality of life has declined to much less desirous value in recent years. Nepal was ranked 54th worst of 81 ranked countries ( those with GHI > 5.0 ) on the Global Hunger Index in 2011, between Cambodia and Togo. Nepal 's current score of 19.5 is better than in 2010 ( 20.0 ) and much improved than its score of 27.5 in 1990. Contents 1 Foreign investments and taxation 2 Imports and exports 3 Resources 4 Macro-economic trend 5 Statistics 6 References 7 External links Foreign Investments and taxation Huge numbers of Small Foreign Investments come to Nepal via the Non Resident Nepali, who are investing in shopping malls, plazas, real estate, tourism, etc. Nepal has a huge capacity for hydroelectricity. Accordingly, a large number of foreign companies are in line, but political instability has stopped the process at the same time as it 's growing on its own. Nepal has entered into agreements for avoidance of double taxation ( all in credit method ) with 10 countries ( PSRD ) since 0000. Similarly, it has Investment protection agreements with 5 countries ( PSRD ) since 1983. In 2014, Nepal restricted the Foreign aid by setting a minimum limit for foreign grants, soft and commercial loans from its development partners. Imports and exports A proportional representation of Nepal 's exports. Nepal 's merchandise trade balance has improved somewhat since 2000 with the growth of the carpet and garment industries. In the fiscal year 2000 - 2001, exports posted a greater increase ( 14 % ) than imports ( 4.5 % ), helping bring the trade deficit down by 4 % from the previous year to $749 million. Recently, the European Union has become the largest buyer of ready - made garments ( RMG ) ; Fruits and vegetables ( mostly : Apples, Pears, Tomatoes, various salads, peach, nectarine, potatoes, rice ) from Nepal. Exports to the EU accounted for 46.13 percent of the country 's garment exports. The annual monsoon rain, or lack of it, strongly influences economic growth. From 1996 to 1999, real GDP growth averaged less than 4 %. The growth rate recovered in 1999, rising to 6 % before slipping slightly in 2001 to 5.5 %. Strong export performance, including earnings from tourism, and external aid have helped improve the overall balance of payments and increase international reserves. Nepal receives substantial amounts of external assistance from the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organisations such as the World Bank, the Asian Development Bank, and the UN Development Programme also provide assistance. In June 1998, Nepal submitted its memorandum on a foreign trade regime to the World Trade Organization and in May 2000 began direct negotiations on its accession. Resources Tourists trekking in Annapurna region in western Nepal. Tourism plays a vital role in Nepal 's economy. Progress has been made in exploiting Nepal 's natural resources, tourism and hydroelectricity. With eight of the world 's 10 highest mountain peaks, including Mount Everest at 8,848 m. In the early 1990s, one large public sector project and a number of private projects were planned ; some have been completed. The most significant private sector financed hydroelectric projects currently in operation are the Khimti Khola ( 60 MW ) and the Bhote Koshi Project ( 36 MW ). The project is still undergoing and has dependency on China, India and Japan to take the further steps. Nepal has 83,000 MW of theoretical and 42,133 MW of technically / financially viable hydroelectric potential, however the total installed capacity, at present, is mere 730.47 MW. The environmental impact of Nepal 's hydroelectric Own calendar ( Bikram Sambat ) New year in mid - April projects has been limited by the fact that most are `` run - of - the - river '' with only one storage project undertaken to date. The largest hydroelectric plant under consideration is the West Seti ( 750 MW ) storage project dedicated to exports to be built by the private sector. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and financing remains a problem. Currently demand for electricity is increasing at 8 - 10 % a year whereas Nepal 's option to have agreement with India will make this fulfilment against demand. Population pressure on natural resources is increasing. Over-population is already straining the `` carrying capacity '' of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel, and fodder and contributing to erosion and flooding. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt. The development of hydroelectric power projects also cause some tension with local indigenous groups, recently empowered by Nepal 's ratification of ILO Convention 169. Macro-economic trend This is a chart of trend of gross domestic product of Nepal at market prices estimated by the International Monetary Fund and EconStats with figures in millions of Nepalese Rupees. Year Gross domestic product 1960 3,870 1965 5,602 1970 8,768 16,571 1980 23,350 1985 46,586 103,415 1995 219,174 2000 379,488 Statistics GDP : : purchasing power parity - $78.55 billion ( 2017 est. ) GDP - real growth rate : 7.5 % ( 2017 ) GDP - per capita : purchasing power parity ( current international $ ) - $2700 ( 2017 est. ) GDP - composition by sector : agriculture : 27 % industry : 13.5 % services : 51.5 % ( 2017 est. ) Population below poverty line : 23.8 % ( 2011 ) Household income or consumption by percentage share : lowest 10 % : 3.2 % highest 10 % : 29.8 % ( 1995 -- 96 ) Inflation rate ( consumer prices ) : 4.5 % ( 2017 ) Labour force : 4 million ( 2016 est. ) ( Citation needed. ) Labor force - by occupation : agriculture 69 %, services 19 %, industry 12 % ( 2014 est. ) Unemployment rate : 3.2 % ( 2017 est. ) Budget : revenues : $5.954 billion expenditures : $5.974 billion, including capital expenditures of $ NA ( 2017 est. ) Industries : tourism, carpet, textile ; small rice, jute, sugar, and oilseed mills ; cigarette ; cement and brick production Industrial production growth rate : 10.9 % ( 2017 est. ) : Electricity - production : 4,083 GWh ( 2017 ) Electricity - production by source : fossil fuel : 8.5 % hydro : 91.5 % nuclear : 0 % other : 0 % ( 2001 ) Available energy : 6257.73 GWh ( 2017 ) NEA HYDRO : 2290.78 GWh ( 2014 ) NEA THERMAL : 9.56 GWh ( 2014 ) purchase ( total ) : 2331.17 GWh ( 2014 ) India ( purchase ) : 2175.04 GWh ( 2017 ) Nepal ( IPP ) : 1258.94 GWh ( 2014 ) Electricity - consumption : 4,776.53 GWh ( 2017 ) Electricity - exports : 95 GWh ( 2001 ) Electricity - imports : 227 GWh ( 2001 ) Oil - production : 0 barrels per day ( 0 m / d ) ( 2001 est. ) Oil - consumption : 16,000 barrels per day ( 2,500 m / d ) 2001 Agriculture - products : Fruits and vegetables ( mostly : Apples, Pears, Tomatoes, various salads, peach, nectarine, potatoes, rice ), maize, wheat, sugarcane, root crops ; milk, domestic buffalo meat Exports : $818.7 million f.o.b., but does not include unrecorded border trade with India ( 2017 est. ) Exports - commodities : carpets, clothing, leather goods, jute goods, grain Exports - partners : India 56.6 %, US 11.5 %, Turkey 4 % ( 2016 est. ) Imports : $11.03 billion f.o.b. ( 2017 est. ) Imports - commodities : gold, machinery and equipment, petroleum products, electrical goods, medicine Imports - partners : India 70.1 %, China 10.3 %, UAE 2.6 %, Singapore 2.1 %, Saudi Arabia 1.2 %. ( 2016 est. ) Debt - external : $5.948 billion ( 2017 est. ) Economic aid - recipient : $424 million ( FY 00 / 01 ) Currency : 1 Nepalese rupee ( NPR ) = 100 paisa Fiscal year : 16 July - 15 July References ^ Jump up to : http://www.indexmundi.com/nepal/economy_profile.html Jump up ^ `` Ease of Doing Business in Nepal ''. Doingbusiness.org. Retrieved 2017 - 01 - 27. Jump up ^ `` Export Partners of Nepal ''. CIA World Factbook. 2015. Retrieved 26 July 2016. Jump up ^ `` Import Partners of Nepal ''. CIA World Factbook. 2015. Retrieved 26 July 2016. Jump up ^ Kathmandu nearly out of fuel, Nepal says. CNN. 17 February 2008. Retrieved 2008 - 04 - 13. Jump up ^ Cost of Living Index in Nepal - Statistics & Graphs of Nepalese Citizen 's Economic Power. Retrieved 10 January 2014. Jump up ^ IFPRI / Concern / Welthungerhilfe : 2011 Global Hunger Index The challenge of hunger : Taming price spikes and excessive food price volatility. Bonn, Washington D.C., Dublin. October 2011. Jump up ^ `` Nepal puts a minimum amount limit on foreign aid and loans ''. IANS. news.biharprabha.com. Retrieved 3 July 2014. Jump up ^ `` EU as Nepal 's largest exporter ''. ktm2day. Retrieved 11 October 2011. Jump up ^ `` UK should cut aid to Nepal if `` endemic '' corruption persists : report ``. Reuters. 27 March 2015. Retrieved 16 May 2015. Jump up ^ `` DFID 's bilateral programme in Nepal ''. The International Development Committee of the House of Commons. 27 March 2015. Retrieved 17 May 2015. Jump up ^ `` A Conversation with Departing Nepal Chief of the UK Aid Agency ''. United We Blog ! for a Democratic Nepal. 15 June 2013. Retrieved 16 May 2015. Jump up ^ `` Nepali Political parties criticize Indian Hydel Power proposal ''. IANS. news.biharprabha.com. Retrieved 20 July 2014. Jump up ^ Jones, Peris : When the lights go out. Hydroelectric power and indigenous rights in Nepal Archived 30 April 2011 at the Wayback Machine... NIBR International Blog 11.03. 10 This article incorporates public domain material from the CIA World Factbook document `` 2003 edition ''. External links Global Economic Prospects : Growth Prospects for South Asia The World Bank, 13 December 2006 World Bank Summary Trade Statistics Nepal South Asian Free Trade Area ( SAFTA ) Members Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka World Trade Organization System Accession and membership Appellate Body Dispute Settlement Body International Trade Centre Chronology of key events Issues Criticism Doha Development Round Singapore issues Quota Elimination Peace Clause Agreements General Agreement on Tariffs and Trade Agriculture Sanitary and Phytosanitary Measures Technical Barriers to Trade Trade Related Investment Measures Trade in Services Trade - Related Aspects of Intellectual Property Rights Government Procurement Information Technology Marrakech Agreement Doha Declaration Bali Package Ministerial Conferences 1st ( 1996 ) 2nd ( 1998 ) 3rd ( 1999 ) 4th ( 2001 ) 5th ( 2003 ) 6th ( 2005 ) 7th ( 2009 ) 8th ( 2011 ) 9th ( 2013 ) 10th ( 2015 ) 11th ( 2017 ) People Roberto Azevêdo ( Director - General ) Pascal Lamy Supachai Panitchpakdi Alejandro Jara Rufus Yerxa Members Afghanistan Albania Algeria Angola Antigua and Barbuda Argentina Armenia Australia Bahrain Bangladesh Barbados Belize Benin Bolivia Botswana Brazil Brunei Burkina Faso Burma Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Democratic Republic of the Congo Republic of the Congo Costa Rica Côte d'Ivoire Cuba Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Fiji Gabon The Gambia Georgia Ghana Grenada Guatemala Guinea Guinea - Bissau Guyana Haiti Honduras Hong Kong Iceland India Indonesia Israel Jamaica Japan Jordan Kazakhstan Kenya South Korea Kuwait Kyrgyzstan Laos Lesotho Liberia Liechtenstein Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Papua New Guinea Paraguay Peru Philippines Qatar Russia Rwanda St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Samoa Saudi Arabia Senegal Seychelles Sierra Leone Singapore Solomon Islands South Africa Sri Lanka Suriname Swaziland Switzerland Tajikistan Taiwan Tanzania Thailand Togo Tonga Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United States Uruguay Venezuela Vietnam Yemen Zambia Zimbabwe European Union Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom Special administrative regions of the People 's Republic of China, participates as `` Hong Kong, China '' and `` Macao China ''. Officially the Republic of China, participates as `` Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu '', and `` Chinese Taipei '' in short. Economy of Asia Sovereign states Afghanistan Armenia Azerbaijan Bahrain Bangladesh Bhutan Brunei Cambodia China Cyprus East Timor ( Timor - Leste ) Egypt Georgia India Indonesia Iran Iraq Israel Japan Jordan Kazakhstan North Korea South Korea Kuwait Kyrgyzstan Laos Lebanon Malaysia Maldives Mongolia Myanmar Nepal Oman Pakistan Philippines Qatar Russia Saudi Arabia Singapore Sri Lanka Syria Tajikistan Thailand Turkey Turkmenistan United Arab Emirates Uzbekistan Vietnam Yemen States with limited recognition Abkhazia Artsakh Northern Cyprus Palestine South Ossetia Taiwan Dependencies and other territories British Indian Ocean Territory Christmas Island Cocos ( Keeling ) Islands Hong Kong Macau Retrieved from `` https://en.wikipedia.org/w/index.php?title=Economy_of_Nepal&oldid=851581949 '' Categories : Economy of Nepal World Trade Organization member economies Hidden categories : Webarchive template wayback links Use Indian English from July 2016 All Wikipedia articles written in Indian English Use dmy dates from July 2016 All articles with vague or ambiguous time Vague or ambiguous time from February 2011 All articles with unsourced statements Articles with unsourced statements from May 2015 Wikipedia articles incorporating text from the World Factbook Talk Contents About Wikipedia Català Español Français Galego हिन्दी Ido Bahasa Indonesia 日本 語 Occitan ਪੰਜਾਬੀ Português Română Русский 5 more Edit links This page was last edited on 23 July 2018, at 08 : 18 ( UTC ). 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Question: what is the economic growth rate of nepal
Answer: 4.96%