From: jana@equinox.unr.edu (Jana Dunn)
Newsgroups: soc.culture.nepal
Subject: World Factbook Entry (Nepal) #5 of 5
Date: 14 Apr 92 19:31:27 GMT
Organization: University of Nevada, Reno

Posting #5 of 5

NEPAL: Economy

Sources: CIA World Factbook: 1990
	 World Almanac: 1992

Overview: Nepal is among the poorest and least developed countries
in the world with a per capita income of only $158. Real growth averaged 4% 
in the 1980s until FY89, when it plunged to 1.5% because of the ongoing
trade/transit dispute with India. Agriculture is the mainstay of the
economy, providing a livelihood for over 90% of the population and
accounting for 60% of GDP and a bout 75% of exports. Industrial activity is
limited, and what there is involves the processing of agricultural
produce (jute, sugarcane, tobacco, and grain).

Apart from agricultural land and forests, the only other exploitable natural 
resources are mica, hydropower, and tourism. Despite considerable investment in
the agricultural sector, production in the 1980s has not kept pace with the 
population growth of 2.7%, which has led to a reduction in exportable 
surpluses and balance-of-payments difficulties. Economic prospects for the 
1990s remain grim.

GDP: $2.9 billion, per capita $158; real growth rate 1.5% (FY89)
[ World Almanac: GNP 1988 3.1 billion ; per cap. 1986 $160 ]

Inflation rate (consumer prices): 8.1% (FY89 est.)
[ World Almanac: 8.2% 1990 est. ]

Unemployment rate: 5%; underemployment estimated at 25-40% (1987)

Budget: revenues $296 million; expenditures $635 million, including
capital expenditures of $394 million (FY89 est.)
[ World Almanac: National budget 1989 $733 million ]

Exports: $374 million (f.o.b., FY89 est.), but does not include unrecorded 
border trade with India; commodities--clothing, carpets,
leather goods, grain; partners--India 38%, US 23%, UK 6%, other 
Europe 9% (FY88)
[ World Almanac: Exports - $210 million (1990) partners--India 47% ]

Imports: $724 million (c.i.f., FY89 est.); commodities--petroleum
products 20%, fertilizer 11%, machinery 10%; partners--India 36%,
Japan 13%, Europe 4%, US 1% (FY88)
[ World Almanac: Imports - $686 million (1990); partners--India 68%
Japan 25% ]

External debt: $1.3 billion (December 1989 est.)

Industrial production: growth rate - 4.5% (FY89 est.)

Electricity: 205,000 kW capacity; 535 million kWh produced, 30 kWh per
capita (1989)

Industries: small rice, jute, sugar, and oilseed mills; cigarette,
textiles, cement, brick; tourism

Agriculture: accounts for 60% of GDP and 90% of work force; farm
products--rice, corn, wheat, sugarcane, root crops, milk, buffalo 
meat; not self-sufficient in food, particularly in drought years

Illicit drugs: illicit producer of cannabis for the domestic and 
international drug markets

Aid: US commitments, including Ex-Im (FY70-88), $285 million; Western
(non-US) countries, ODA and OOF bilateral commitments (1980-87), 
$1.8 billion; OPEC bilateral aid (1979-89), $30 million; Communist 
countries (1970-88), $273 million

Currency: Nepalese rupee (plural--rupees); 1 Nepalese
rupee (NR) = 100 paisa

Exchange rates: Nepalese rupees (NRs) per US$1--28.5
59 (January 1990), 27.189 (1989), 23.289 (1988), 21.819 (1987), 
21.230 (1986), 18.246 (1985)
[ World Almanac: March 1991 33 rupees/dollar ]
< I am told the current exchange rate is 42.60 rupees/dollar >

Fiscal year: 16 July-15 July

Communications:
Railroads: 52 km (1985), all 0.762-meter narrow gauge; all in Terai close
to Indian border; 10 km from Raxaul to Birganj is government owned

Highways: 5,958 km total (1986); 2,645 km paved, 815 km gravel or crushed
stone, 2,257 km improved and unimproved earth; also 241 km of seasonally
motorable tracks

Civil air: 5 major and 11 minor transport aircraft

Airports: 38 total, 38 usable; 5 with permanent-surface runways;
none with runways over 3,659 m; 1 with runways 2,440-3,659 m; 9 with
runways 1,220-2,439 m

Telecommunications: poor telephone and telegraph service; fair radio
communication and broadcast service; international radio communication 
service is poor; 30,000 telephones (1987); stations--4 AM, no FM, 1 TV; 
1 Indian Ocean INTELSAT earth station
[ World Almanac: 1 radio per 8.5 persons; 1 telephone per 686 persons ]

- Defense Forces
Branches: Royal Nepalese Army, Royal Nepalese Army Air Service, Nepalese
Police Force

Military manpower: males 15-49, 4,531,660; 2,347,412 fit for military
service; 225,349 reach military age (17) annually

Defense expenditures: 2% of GDP, or $58 million (1989 est.)