NEPAL ECONOMY

December 20, 2010Bureau of South and Central Asian Affairs
Background Note: Nepal
                                                     
Official Name: Federal Democratic Republic of Nepal



PROFILE

Geography
Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.
Cities: Capital--Kathmandu (3 districts) (pop. 2.2 million est.). Other cities--Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.
Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.
Climate: Ranging from subtropical in the south to temperate in the hills to arctic at high altitudes. The monsoon season is from June to September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.
Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

People
Nationality: Noun--Nepali (sing.) or Nepalese (plural). Adjective--Nepalese or Nepali.
Population (2009 estimate): 29.3 million.
Annual population growth rate (2007 estimate): 2.132%.
Population breakdown/distribution (from 2001 census): Rural (86%); female (50%); in the southern Terai region (49%); in the hills (44%); in the mountains (7%). The next census will be done in 2011.
Ethnic groups (caste and ethnicity are often used interchangeably): Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others.
Religions (from 2001 census): Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%). The next census will be done in 2011.
Languages: Nepali and more than 100 regional and indigenous languages.
Education: Years compulsory--none, although education is free through Grade 8. Attendance--primary 84% (86% male, 82% female), secondary 43.5% (46% male, 41% female). Literacy--57% (among youth age 15-24: 85% male, 73% female).
Health: Infant mortality rate (2008 estimate)--41 deaths/1,000 live births. Life expectancy--67 years.
Work force: Agriculture 73.9%; non-agriculture 26.1%.

Government
Type: Representative democracy.
Constitution: Interim constitution promulgated on January 15, 2007. Constituent Assembly convened May 2008 to draft a new constitution. In May 2010, the deadline for the drafting of the constitution was extended 1 year.
Branches: Executive--President (head of state), Prime Minister (head of government). Legislative--The Constituent Assembly is a unicameral Parliament, consisting of 601 members; 240 members were elected through a direct electoral process representing single-member constituencies across the country; 335 members were nominated from party lists through a proportional representation system; and 26 were nominated by the cabinet as representatives of ethnic and indigenous communities. Judicial--Supreme Court, 16 appellate courts, 75 district courts.
Subdivisions: 5 development regions, 14 zones, and 75 districts. 75 district development committees, 58 municipalities, 3,913 village development committees, and 36,023 ward committees.
Political parties: United Communist Party of Nepal-Maoist (UCPN-M), formerly known as the Communist Party of Nepal-Maoist (CPN-M), (on the U.S. terrorist exclusion list); Nepali Congress (NC); Communist Party of Nepal-United Marxist Leninist (CPN-UML); Madhesi People's Rights Forum (MPRF); Madhesi People’s Right Forum-Democratic (MPRF-D); Tarai Madhes Democratic Party (TMDP); Sadhbavana Party (SP); Rastriya Prajatantra Party (RPP); and 17 others.
Elections: Constituent Assembly election held on April 10, 2008.
Suffrage: Universal over 18.
Security spending (FY 2010-2011): Defense $247.19 million; police $264 million. Total budget is $4.65 billion.
National Day: Republic Day, Jestha 15 (May 28); Democracy Day, Falgun 7 (mid-February). (Note: Jestha and Falgun are months of the Nepalese calendar.)

Economy
GDP (2009): $12.6 billion.
Annual growth rate of real GDP (FY 2009): 4.7%.
Per capita income (gross national product, FY 2009): $427 (World Bank); $536 (International Monetary Fund).
Avg. inflation rate (Consumer Price Index, 2009): 11.8%.
Natural resources: Water, hydropower, limited but fertile agricultural land, timber.
Agriculture (34% of GDP): Products--rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land--25%.
Industry (16% of GDP): Types--carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, manufactured goods, hydroelectric power.
Trade (2009-2010): Exports--$804 million: carpets, pashmina, garments. Major markets--India, China, EU 27, and the U.S. Imports--$4.69 billion: petroleum products, manufactured goods. Major supplier--India. Trade deficit: $3.89 billion.
Official exchange rate (as of December 6, 2010): NPR 71.79 = U.S. $1.00.
Fiscal year: July 16-July 15.