1. Low Per Capita Income: Nepal has a low per capita income compared to its neighbouring countries. The Per Capita Income of Nepal in 2019 was US$ 1085 which has inclined to approximately 1200 US$ in 2021 A.D.

2. Mass Poverty: The estimated poverty headcount ratio is expected to be 16.67 per cent in 2020, down from 18.7 per cent in 2018.

3. Underutilization of Natural Resources: Research shows that different areas of the country have deposits of minerals but due to lack of modern technology and skilled labour the country has been unable to produce these minerals at maximum levels.

4. High Trade Deficit: The trade deficit is increasing every year. The trade deficit in 2019 was 1321.4 arba. The trade deficit in 2018 was 1136.7 arba. The increasing trade deficit is due to the increase in imports relative to exports each year.

5. Dualistic and Mixed Economic System: Nepal has a mixed economic system. The dualistic feature of Nepal depicts the existence of both the traditional and modern sectors. The traditional sector relies on agriculture for their livelihood and the modern sector relies on the manufacturing of goods and services.

6. Rapid Population Growth:
The population of Nepal has been steadily rising in recent decades. The current population is roughly 30 million which contributes to an increase of about 3 million people every 5 years. Rapid population growth has resulted in underemployment. The current population growth rate is 1.36.

7. Remittance Economy: Nepal is highly dependent on remittance income. The remittance income in 2019 was 879.3 arba. It represented a 16.5 per cent increase from the previous year. An increase in remittance compared to GDP shows the increased dependence of Nepal on other countries.

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