Economic overview Nepal, in 36 editions.

Nepal is among the poorest and least developed countries in the world with a per capita income of only $158. less than $200. Real growth averaged 4% in the 1980s until FY89, when it plunged to 1.5% because of the ongoing a trade/transit dispute with India. Though the impasse is over, political turmoil and inflated energy costs will probably constrain growth to under 4%. Agriculture is the mainstay of the economy, providing a livelihood for over 90% of the population and accounting for 60% of GDP and about 75% of exports. GDP. Industrial activity is limited, and what there is involves mainly involving the processing of agricultural produce (jute, sugarcane, tobacco, and grain). Production of textiles and carpets has expanded recently and accounted for 87% of foreign exchange earnings in FY89. Apart from agricultural land and forests, the only other exploitable natural resources are mica, hydropower, and tourism. Despite considerable investment in the agricultural sector, Agricultural production in the late 1980s has not kept pace grew by about 5%, compared with the a population growth of 2.7%, which has led to a reduction in exportable surpluses and balance-of-payments difficulties. 2.6%. Forty percent or more of the population is undernourished partly because of poor distribution. Economic prospects for the 1990s remain grim. are poor, with economic growth probably outpacing population growth only slightly.

Nepal is among the poorest and least developed countries in the world with a per capita income of less than $200. Real growth averaged 4% in the 1980s until FY89, when it plunged to 1.5% because of a trade/transit dispute with India. Though the impasse is over, political turmoil and inflated energy costs will probably constrain growth to under 4%. world.
Agriculture is the mainstay of the economy, providing a livelihood for over
90% of the population and accounting for 60% of GDP. Industrial activity is
limited, mainly involving the processing of agricultural produce (jute,
sugarcane, tobacco, and grain). Production of textiles and carpets has
expanded recently and accounted for 87% of foreign exchange earnings in
FY89. Apart from agricultural land and forests, the only other exploitable
natural resources are mica, hydropower, and tourism. Agricultural production
in the late 1980s grew by about 5%, as compared with a annual population
growth of 2.6%. Forty percent or more of the population is undernourished
partly because of poor distribution. Since May 1991, the government has been
encouraging privatization and foreign investment. It has introduced policies
to eliminate many business licenses and registration requirements in order
to simplify domestic and foreign investment procedures. Economic prospects
for the 1990s are poor, with economic growth probably outpacing population growth only slightly. remain poor because the economy starts from such a low base.

Nepal is among the poorest and least developed countries in the world.
Agriculture is the mainstay of the economy, providing a livelihood for over
90% of the population and accounting for 60% of GDP. Industrial activity is
limited, mainly involving the processing of agricultural produce (jute,
sugarcane, tobacco, and grain). Production of textiles and carpets has
expanded recently and accounted for 87% 85% of foreign exchange earnings in
FY89. FY91. Apart from agricultural land and forests, the only other exploitable
natural
resources are mica, hydropower, and tourism. Agricultural production
in the
late 1980s grew by about 5%, as compared with annual population
growth of
2.6%. Forty percent or more More than 40% of the population is undernourished
partly because of
poor distribution. The top 10% of the population receives 47% of total
income, the bottom 20% less than 5% of the total. Since May 1991, the
government has been
encouraging privatization trade and foreign investment. It has introduced policies investment, e.g., by
to eliminate many eliminating business licenses and registration requirements in order
to
simplify domestic and foreign investment procedures. Economic prospects investment. The government also has been
cutting public expenditures by reducing subsides, privatizing state
industries, and laying off civil servants. Prospects for foreign trade and
investment in the 1990s remain poor poor, however, because of the economy starts from such a low base. small size of
the economy, its technological backwardness, and its remoteness.

Nepal is among the poorest and least developed countries in the world.
Agriculture is the mainstay of the economy, providing a livelihood for over
over 90% of the population and accounting for 60% of GDP. Industrial
activity is
limited, mainly involving the processing of agricultural
produce (jute,
sugarcane, tobacco, and grain). Production of textiles
and carpets has
expanded recently and accounted for 85% of foreign
exchange earnings in
FY91. FY94. Apart from agricultural land and forests,
exploitable natural
resources are mica, hydropower, and tourism.
Agricultural production in the
late 1980s grew by about 5%, as
compared with annual population growth of
2.6%. More than 40% of the population is undernourished partly because of
poor distribution. The top 10% of the population receives 47% of total
income, the bottom 20% less than 5% of the total. is undernourished. Since May 1991, the
government has been
encouraging trade and foreign investment, e.g., by
eliminating
business licenses and registration requirements in order to
simplify
domestic and foreign investment. The government also has been
cutting
public expenditures by reducing subsides, subsidies, privatizing state
industries, and laying off civil servants. Prospects for foreign trade and
and investment in the 1990s remain poor, however, because of the small
size of
the economy, its technological backwardness, and its remoteness. remoteness,
and susceptibility to natural disaster. Nepal experienced severe
flooding in August 1993 which caused at least $50 million in damage to
the country's infrastructure.

Nepal is among the poorest and least developed countries in
the world.
Agriculture is the mainstay of the economy, providing a
livelihood for
over 90% of the population and accounting for 60% half of
GDP. Industrial
activity is limited, mainly involving the processing
of agricultural
produce (jute, sugarcane, tobacco, and grain).
Production of textiles
and carpets has expanded recently and accounted
for 85% of foreign
exchange earnings in FY94. FY93/94. Apart from
agricultural land and forests,
exploitable natural resources are mica,
hydropower, and tourism.
Agricultural production in the late 1980s
grew by about 5%, as
compared with annual population growth of 2.6%.
More than 40% of the
population is undernourished. Since May 1991, the
government has been
encouraging trade and foreign investment, e.g., by eliminating
eliminating business licenses and registration requirements in order
to simplify
domestic and foreign investment. The government also has
been cutting
public expenditures by reducing subsidies, privatizing state
state industries, and laying off civil servants. Prospects for foreign trade
trade and investment in the 1990s remain poor, however, because of the small
small size of the economy, its technological backwardness, its remoteness,
remoteness, and susceptibility to natural disaster. Nepal experienced severe The international
flooding in August 1993 which caused at least $50 million in damage community provides funding for 70% of Nepal's developmental budget and
for 30% of total budgetary expenditures. The government, realizing
that attempts to reverse three years of liberalization would
the country's infrastructure. jeopardize this vital support, almost certainly will move ahead with
its reform program in 1995-96.

Nepal is among the poorest and least developed
countries in
the world. Agriculture is the mainstay of the economy,
providing a
livelihood for over 90% 80% of the population and accounting
for half about one-half of
GDP. Industrial activity is limited, mainly
involving the processing
of agricultural produce (jute, sugarcane,
tobacco, and grain).
Production of textiles and carpets has expanded
recently and accounted
for 85% of foreign exchange earnings in
FY93/94. Apart from
agricultural land and forests, exploitable
natural resources are mica,
hydropower, and tourism. Agricultural
production in the late 1980s
grew by about 5%, as compared with
annual population growth of 2.6%.
More than 40% of the population is
undernourished. Since May 1991, the
government has been encouraging moving
forward with economic reforms particularly those that encourage
trade and foreign investment, e.g., by
eliminating business licenses
and registration requirements in order
to simplify domestic and foreign investment. investment
procedures. The government also has
also been cutting public expenditures
by reducing subsidies, privatizing
state industries, and laying off
civil servants. (In 1995 little progress was made in these areas
because the communist government had trouble formulating and
implementing policies.) The new coalition government is planning to
pick up the pace of reforms in 1996, focusing primarily on raising
revenues to develop the rural sector by increasing taxation and
privatization. Prospects for foreign
trade and investment investment,
particularly in the 1990s areas other than power development and tourism, will
continue to remain poor, however, poor because of the
small size of the economy,
its technological backwardness, its
remoteness, and its
susceptibility to natural disaster. The international
community
provides funding for 70% 62% of Nepal's developmental budget and
for 30% 34%
of total budgetary expenditures. The government, realizing
that attempts to reverse three years of liberalization would
jeopardize this vital support, almost certainly will move ahead with
its reform program in 1995-96.

Nepal is among the poorest and least developed
countries in the world. world with about 60% of the population living below
the poverty line. Agriculture is the mainstay of the economy,
providing a livelihood for over 80% of the population and accounting
for about one-half more than 40% of GDP. Industrial activity is limited, mainly
involving the processing of agricultural produce (jute, sugarcane, including jute,
sugarcane, tobacco, and grain). grain. Production of textiles and carpets has expanded
expanded recently and accounted for 85% about 80% of foreign exchange
earnings in
FY93/94. the past two years. Apart from agricultural land and
forests, exploitable
natural resources are mica, hydropower, and
tourism. Agricultural
production in the late 1980s grew by is growing about 5%, 5% on average as
compared with
annual population growth of 2.6%. More than 40% of the population is
undernourished. 2.5%. Since May 1991, the
government has been moving
forward with economic reforms particularly
those that encourage
trade and foreign investment, e.g., by
eliminating business licenses
and registration requirements in order
to simplify investment
procedures. The government has also been
cutting public expenditures
by reducing subsidies, privatizing state
industries, and laying off
civil servants. (In 1995 little progress was made in these areas
because the communist government had trouble formulating and
implementing policies.) The new coalition government is planning to made some
pick up the pace of reforms progress in 1996, focusing primarily on raising signing trade agreements with countries including
revenues to develop the rural sector by increasing taxation India, and attracting substantial foreign investment in hydropower.
privatization. Prospects for foreign trade and investment,
particularly investment in areas other than power development besides hydropower
and tourism, tourism will
continue to remain poor because of the small size of
the economy,
its technological backwardness, its remoteness, and its
susceptibility landlocked geographic location highly susceptible to natural disaster.
The international community
provides funding for 62% more than 60% of
Nepal's developmental development budget and for 34%
more than 30% of total budgetary
expenditures.

Nepal is among the poorest and least developed
countries in the world with about 60% more than half of the its population living below
below the poverty line. Agriculture is the mainstay of the economy,
providing a livelihood for over 80% of the population and accounting
for more than 40% of GDP. Industrial activity is limited, mainly
involving involves the processing of
agricultural produce including jute,
sugarcane, tobacco, and grain.
Production of textiles and carpets has
expanded recently and accounted
for about 80% of foreign exchange
earnings in the past two years.
Apart from agricultural land and
forests, exploitable natural
resources are mica, hydropower, and
tourism. Agricultural production
is growing by about 5% on average as
compared with annual population
growth of 2.5%. Since May 1991, the
government has been moving forward
with economic reforms particularly
those that encourage trade and
foreign investment, e.g., by
eliminating business licenses and
registration requirements in order
to simplify investment procedures.
The government has also been
cutting expenditures by reducing
subsidies, privatizing state
industries, and laying off civil
servants. The government made some More recently, however, political instability - five
progress in 1996, signing trade agreements with countries including different governments over the past few years-has hampered Kathmandu's
India, ability to forge consensus to implement key economic reforms. Nepal
has considerable scope for accelerating economic growth by exploiting
its potential in hydropower and attracting substantial tourism, areas where there has
recently been foreign investment in hydropower.
interest. Prospects for foreign trade and
or investment in other areas besides hydropower
and tourism will continue to remain poor poor, however, because of the
small size of
the economy, its technological backwardness, its
remoteness, and its
landlocked geographic location highly susceptible location, and its susceptibility
to natural disaster.
The international community provides community's role of funding for
more than 60% of
Nepal's development budget and more than 30% 28% of total
budgetary expenditures will likely continue as a major ingredient of
expenditures. growth.

Nepal is among the poorest and least developed
countries in the world with more than nearly half of its population living
below the poverty line. Agriculture is the mainstay of the economy,
providing a livelihood for over 80% of the population and accounting
for 40% 41% of GDP. Industrial activity mainly involves the processing of
of agricultural produce including jute, sugarcane, tobacco, and grain.
grain. Production of textiles and carpets has expanded recently and accounted
accounted for about 80% of foreign exchange earnings in the past two years.
three years. Apart from agricultural land and forests, exploitable natural
natural resources are mica, hydropower, and tourism. Agricultural production
production is growing by about 5% on average as compared with annual population
population growth of 2.5%. Since May 1991, the government has been
moving forward
with economic reforms particularly those that
encourage trade and
foreign investment, e.g., by eliminating
business licenses and
registration requirements in order to simplify
investment procedures.
The government has also been cutting
expenditures by reducing
subsidies, privatizing state industries,
and laying off civil
servants. More recently, however, political instability - five
instability--five different governments over the past few years-has years--has
hampered Kathmandu's
ability to forge consensus to implement key
economic reforms. Nepal
has considerable scope for accelerating
economic growth by exploiting
its potential in hydropower and
tourism, areas where there has
recently been of recent foreign investment interest. Prospects for
foreign trade
or investment in other areas sectors will remain poor,
however, because of the
small size of the economy, its technological
backwardness, its
remoteness, its landlocked geographic location,
and its susceptibility
to natural disaster. The international
community's role of funding
more than 60% of Nepal's development
budget and more than 28% of total
budgetary expenditures will likely
continue as a major ingredient of
growth.

Nepal is among the poorest and least developed
countries in the world with nearly half of its population living
below the poverty line. Agriculture is the mainstay of the economy,
providing a livelihood for over 80% of the population and accounting
for 41% of GDP. Industrial activity mainly involves the processing
of agricultural produce including jute, sugarcane, tobacco, and
grain. Production of textiles and carpets has expanded recently and
accounted for about 80% of foreign exchange earnings in the past
three years. Apart from agricultural land and forests, exploitable
natural resources are mica, hydropower, and tourism. Agricultural
production is growing by about 5% on average as compared with annual
population growth of 2.5%. 2.3%. Since May 1991, the government has been
moving forward with economic reforms reforms, particularly those that
encourage trade and foreign investment, e.g., by eliminating
reducing business licenses and registration requirements in order to simplify
investment procedures. The government has also been cutting
expenditures by reducing subsidies, privatizing state industries,
and laying off civil servants. More recently, however, political
instability--five instability - five different governments over the past few years--has
years - has hampered Kathmandu's ability to forge consensus to implement key
economic reforms. Nepal has considerable scope for accelerating
economic growth by 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,
and its susceptibility to natural disaster. The international
community's role of funding more than 60% of Nepal's development
budget and more than 28% of total budgetary expenditures will likely
continue as a major ingredient of growth.

Nepal is among the poorest and least developed countries in the world with nearly half of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 41% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Production of textiles and carpets has expanded recently Textile and accounted carpet production, accounteing for about 80% of foreign exchange earnings in recent years, contracted significantly in 2001 due to the past three years. overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers. Security concerns in the wake of Maoist activity, the June massacre of many members of the royal family, and the September 11 terrorist attacks in the US led to a decrease in tourism, another key source of foreign exchange. Agricultural production is growing by about 5% on average as compared with annual population growth of 2.3%. Since May 1991, the government has been moving forward with economic reforms, particularly those that encourage trade and foreign investment, e.g., by reducing business licenses and registration requirements in order to simplify investment procedures. The government has also been cutting expenditures by reducing subsidies, privatizing state industries, and laying off civil servants. More recently, however, political instability - five different governments over the past few years - has hampered Kathmandu's ability to forge consensus to implement key economic reforms. Nepal has considerable scope for accelerating economic growth by 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, and its susceptibility to natural disaster. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.

Nepal is among the poorest and least developed countries in the world with nearly half 42% of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 41% 40% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Textile and carpet production, accounteing accounting for about 80% of foreign exchange earnings in recent years, contracted significantly in 2001 2001-02 due to the overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers. Security concerns in the wake of Maoist activity, the June massacre of many members of the royal family, Maoist conflict and the September 11 11, 2001 terrorist attacks in the US have led to a decrease in tourism, another key source of foreign exchange. Agricultural production is growing by about 5% on average as compared with annual population growth of 2.3%. Since May 1991, the government has been moving forward with economic reforms, particularly those that encourage trade and foreign investment, e.g., by reducing business licenses and registration requirements to simplify investment procedures. The government has also been cutting expenditures by procedures, reducing subsidies, privatizing state industries, and laying off civil servants. More recently, however, political instability - five different governments over the past few years - has hampered Kathmandu's ability to forge consensus to implement key economic reforms. Nepal has considerable scope for accelerating economic growth by 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, and its susceptibility to natural disaster. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.

Nepal is among the poorest and least developed countries in the world with 42% of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 40% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Textile and carpet production, accounting for about 80% of foreign exchange earnings in recent years, contracted in 2001-02 due to the overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers. Security concerns in the wake of the Maoist conflict and the 11 September 11, 2001 terrorist attacks in the US have led to a decrease in tourism, another a key source of foreign exchange. Since 1991, the government has been moving forward with economic reforms, e.g., by reducing business licenses and registration requirements to simplify investment procedures, reducing subsidies, privatizing state industries, and laying off civil servants. 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. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.

Nepal is among the poorest and least developed countries in the world with 42% 40% of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 40% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Security concerns in the wake of the Maoist conflict and the 11 September 2001 terrorist attacks in the US 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. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.

Nepal is among the poorest and least developed countries in the world with 40% almost one-third of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% three-fourths of the population and accounting for 40% 38% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Security concerns in the wake of 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.

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% about one-third of GDP. Industrial activity mainly involves the processing of agricultural produce products, including pulses, jute, sugarcane, tobacco, and grain. Security concerns relating to Bumper crops, better security, improved transportation, and increased tourism pushed growth past 5% in 2008, after growth had hovered around 3% - barely above the Maoist conflict have led to a decrease rate of population growth - for the previous three years. The deteriorating world economy in tourism, 2009 will challenge tourism and remittance growth, 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 remoteness and landlocked geographic location, its civil strife, strife and labor unrest, and its susceptibility to natural disaster.

Nepal is among the poorest and least developed countries in the world world, with almost one-third one-quarter 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 about one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Bumper crops, better security, improved transportation, and increased tourism pushed growth past 5% in 2008, after growth had hovered around 3% - barely above the rate of population growth - for the previous three years. The deteriorating world economy in 2009 will challenge tourism and remittance growth, a key source of foreign exchange. Nepal has considerable scope for exploiting its potential in hydropower and tourism, areas hydropower, with an estimated 42,000 MW of recent foreign investment interest. Prospects for feasible capacity, but political instability hampers foreign trade or investment in other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, investment. Additional challenges to Nepal's growth include its remoteness and landlocked geographic location, its civil strife and labor unrest, and its susceptibility to natural disaster.

Nepal is among the poorest and least developed countries in the world, with almost with about one-quarter 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 about a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

Nepal is among the poorest and least developed countries in the world, with with about one-quarter 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 a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 22-25% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths more than 70% of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity, but political instability hampers uncertainty and a difficult business climate have hampered foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013.

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 22-25% 22%-25% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity, but political uncertainty and a difficult business climate have hampered foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013. 2013 and 2014. Nepal and India signed trade and investment agreements in 2014 that will increase Nepal’s hydropower potential.

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 22%-25% 29% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for more than almost 70% of the population and accounting for a little over about one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain.
Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity, capacity. Nepal and India signed trade and investment agreements in 2014 that increase Nepal’s hydropower potential, but political uncertainty and a difficult business climate have hampered foreign investment.
Nepal was hit by massive earthquakes in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Political gridlock in the past several years and recent public protests, predominantly in the southern Tarai region, have hindered post-earthquake recovery and prevented much-needed economic reform. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, and underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013 and 2014. Nepal and India signed trade and investment agreements in 2014 that will increase Nepal’s hydropower potential. infrastructure.

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 29% 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost 70% two-thirds of the population and but accounting for about only one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain.
Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity. Nepal and India signed trade and investment agreements in 2014 that increase Nepal’s hydropower potential, but political uncertainty and a difficult business climate have hampered foreign investment.
Nepal was hit by massive earthquakes in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Political gridlock in the past several years and recent public protests, predominantly in the southern Tarai region, have hindered post-earthquake recovery and prevented much-needed economic reform. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, and underdeveloped transportation infrastructure.

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost two-thirds of the population but accounting for only one-third less than a third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain.
Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity. Nepal and India has signed trade and investment agreements in 2014 that increase Nepal’s hydropower potential, with India, China, and other countries, but political uncertainty and a difficult business climate have hampered foreign investment.
The United States and Nepal was hit by massive signed a $500 million Millennium Challenge Corporation Compact in September 2017 which will expand Nepal’s electricity infrastructure and help maintain transportation infrastructure. Massive earthquakes struck Nepal in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Political Although political gridlock in the past several years and recent public protests, predominantly in the southern Tarai region, lack of capacity have hindered post-earthquake recovery and prevented much-needed economic reform. recovery, government-led reconstruction efforts have progressively picked up speed, although many hard hit areas still have seen little assistance. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, inconsistent electricity supply, and underdeveloped transportation infrastructure.

Nepal is among the least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost two-thirds of the population but accounting for less than a third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain.
Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity. Nepal has signed trade and investment agreements with India, China, and other countries, but political uncertainty and a difficult business climate have hampered foreign investment. The United States and Nepal signed a $500 million Millennium Challenge Corporation Compact in September 2017 which will expand Nepal’s electricity infrastructure and help maintain transportation infrastructure.
Massive earthquakes struck Nepal in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Although political gridlock and lack of capacity have hindered post-earthquake recovery, government-led reconstruction efforts have progressively picked up speed, although many hard hit areas still have seen little assistance. Additional challenges to Nepal's growth include its landlocked geographic location, inconsistent electricity supply, and underdeveloped transportation infrastructure.