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GDP Composition % Nepal Introduction Key Economic Facts Risk Assessment (Provided by Coface) Nepal is a landlocked country in South Asia and is bordered Income Level (by per capita Low Income Country rating: C - A very uncertain political and economic by China and India. It is located in the Himalayas and GNI): outlook and a business environment with many troublesome contains eight of the world's ten highest peaks. The Level of Development: Developing weaknesses can have a significant impact on corporate government system is a federal GDP, PPP (current international $102.08 billion (2019) parliamentary republic; the chief of state is $): payment behavior. Corporate default probability is high. the president, and the head of GDP growth (annual %): 6.99% (2019) Business Climate rating: B - The business environment is government is the prime minister. Nepal GDP per capita, PPP (current $3,567.99 (2019) mediocre. The availability and the reliability of corporate has a traditional economic system in international $): financial information vary widely. Debt collection can which the majority of the population engages in subsistence External debt stocks, total $6,513,365,074.40 (2019) sometimes be difficult. The institutional framework has a few agriculture, and the allocation of available resources is (DOD, current US$): made on the basis of primitive methods. Nepal is a member Manufacturing, value added (% 4.98% (2019) troublesome weaknesses. Intercompany transactions run of the South Asian Association of GDP): appreciable risks in the unstable, largely inefficient for Regional Cooperation Current account balance (BoP, -$1.71 billion (2019) environments rated B. current US$): (SAARC). Strengths Inflation, consumer prices 5.57% (2019) (annual %): • Reliable remittance flows support consumption, the Labor force, total: 17,407,517 (2020) main driver of growth Unemployment, total (% of 1.47% (2020) • Expanding services sector, especially tourism total labor force) (modeled ILO estimate): • Financial and technical support from India and China Location: Southern Asia Imports of goods and services $14.17 billion (2019) • Recipient of vast sums of international aid Capital City: Kathmandu (+5:45 GMT) (current US$): • Political transformation supports growing stability Chief of State: President Bidhya Devi Bhandari Exports of goods and services $2.66 billion (2019) Weaknesses (current US$): Head of Govt.: Prime Minister Sher Bahadur Debua • Landlocked, poor accessibility Currency: Nepalese rupee (NPR) GDP Composition % Agriculture Services Industry Manufacturing • Natural disasters and extreme climate events, Major Languages: <p>Nepali (official) 44.6%, Maithali 11.7%, Bhojpuri 6%, Tharu 5.8%, economy still affected by the 2015 earthquakes Tamang 5.1%, Newar 3.2%, Magar 51 • Infrastructure shortcomings, electricity and fuel 3%, Bajjika 3%, Urdu 2.6%, Avadhi 24 13 1.9%, Limbu 1.3%, Gurung 1.2%, 5 shortages, undiversified export basket (clothing and other 10.4%, unspecified 0.2%</p> *Although Manufacturing is included in the Industry figures, it is also separately agriculture) Primary Religions: <p>Hindu 81.3%, Buddhist 9%, reported because it plays a critical role in economy. • Tensions between China and India could make Muslim 4.4%, Kirant 3.1%, Christian Rankings 1.4%, other 0.5%, unspecifed relations difficult 0.2%</p> Index Rank • Excessive dependence on the Indian economy, Corruption Perceptions Index 113 / 180 Calling Code: 977 notably through a currency peg Voltage: 230 Global Competitiveness Index 108 / 141 • Governance shortcomings Global Enabling Trade Index 108 / 136 Key Websites Index of Economic Freedom 135 / 179 U.S. Embassy Main Government Page: nepal.gov.np International Logistics Performance Index (LPI) 114 / 160 U.S. Embassy Kathmandu Commerce Ministry: doc.gov.np Inward FDI Potential Index 133 / 139 Maharajgunj, Kathmandu, Nepal Investment Promotion ibn.gov.np KOF Index of Globalization 172 / 185 Tel.: 977-1-423-4000 Agency: Networked Readiness Index (NRI) 118 / 139 https://np.usembassy.gov Open Budget Index 43 / 115 Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.
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