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Nepal finds among the countries more poor people and less developed of the world, with approximately an average splits of its population living under the line of poverty (with an admission|income per capita with great dificulty of 240 dollars).

The economy suffers for the geographical isolation of the country.

The agriculture is the main suport of itse economy, supplying aliment for more with 80% of the population and constituting 41% of the PNB. The industrial activity limits itself to the processing of agricultural produce, including jute, cane of sugar, tobacco and grain|spot. The production of textiles and carpets has expanded recently and has represented about 80% of the exchange with the foreigner in recent years. The senior part of the industrial activity is focused around the valley of Katmandú and the cities Terai like Biratnagar and Birgunj.

The agricultural production has a growth of approximately 5% in average compared with the annual demographic growth of 2,3%.

Since May of 1991, the Nepalese government has been making positive steps on the subject of economical reforms, particularly with those that encourage the trade and the foreign inversions|investments; for example, reducing the licenses of businesses and registració required to simplify the procedures for investments. The government has also reduced its expenses limiting the subsidies, privatizing state industries and sacking civil servants.

However, more recently the political instability (more than five different governments in the last years) has entailed the skill of Katmandú of achieving consensus for implementing the economic|economical reforms nail.

Reducing poverty

In the last years, even though the internal conflict propitiated a stagnation of the economics|economy, Nepal has experienced a remarkable reduction in the indexes|rates of poverty. Thus, since 1996 people have gone from 42% of the population that lived with less than 2 daily dollars, at 31% in 2006. The disparity rural-urban keeps, with remarkable differences between the rural poverty, which arrives at 35% with the policewoman, that it|he|she brings down until 10%.

The economics|economy of the country is characterized by the great agricultural industry that supposes the means of life for 80% of the active population, as well as also for a small but fast growth of the urban economics|economy.

The agriculture represents only 39,2% of the PIB, with a high index|rate d'infraocupació and low productivity. L'estacament of the agriculture has been associated with an increase of the dependence from the rural population, which without some additional admissions|incomes that the stockbreeding can provide them, has been derived with an important emigration towards urban areas and also abroad, especially the India, the Orient Means, Malaysia and South Korea.

The remittances of the immigrants occupy, a paper|role more important in the economics|economy of many families, every time more. These trends provoke an important social pressure in the urban areas as well as also important changes in the company|society and in the rural economics|economy, including a growth of the feminization of the agriculture.

Hydroelectric and touristic potential

Nepal has a considerable field for speeding the economic growth through the exploitation of its|his|her|their potential in hydroelectric energy and tourism, areas of recent interest of foreign investors. The prospects of trade or foreign investment in other sectors remain scarce, however, because of its feeble economy, its technological delay, its distance, its geographical location without exit to the sea and its susceptibility in natural disasters.

The role of the international community of funding some in 60% of the budget of Nepalese development and more in 28% of the total of the budgetary expenses possibly continues being an important ingredient more in its|his|her|their growth.

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