Economy - overview:
Nepal is among the poorest and least developed countries in the
world with almost one-third 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
38% of GDP. Industrial activity mainly involves the processing of
agricultural produce including jute, sugarcane, tobacco, and grain.
Security concerns relating to the Maoist conflict have led to a
decrease in tourism, a key source of foreign exchange. Nepal has
considerable scope for exploiting its potential in hydropower and
tourism, areas of recent foreign investment interest. Prospects for
foreign trade or investment in other sectors will remain poor,
however, because of the small size of the economy, its technological
backwardness, its remoteness, its landlocked geographic location,
its civil strife, and its susceptibility to natural disaster.
GDP (purchasing power parity):
$39.14 billion (2005 est.)
GDP (official exchange rate):
$6.655 billion (2005 est.)
GDP - real growth rate:
2.7% (2005 est.)
GDP - per capita (PPP):
$1,400 (2005 est.)
GDP - composition by sector: agriculture: 38% industry: 21% services: 41% (2005 est.)
Labor force: 10.4 million note: severe lack of skilled labor (2004 est.)
Labor force - by occupation: agriculture: 76% industry: 6% services: 18%
Unemployment rate:
42% (2004 est.)
Population below poverty line:
31% (2003-2004)