Macroeconomic Indicators of Central Government of Nepal (Updated 2024)

MACROECONOMIC INDICATORS OF THE CENTRAL GOVERNMENT OF NEPAL:

1. Economic Growth Rate

Economic growth, measured by the increase in real GDP, has seen a rebound. As of FY2023, Nepal's GDP growth was recorded at 1.9%, with a projected increase to 3.3% in FY2024, and an expected average growth rate of 5% over FY2025-26. Among the provinces, Sudurpaschim showed the highest growth rate at 4.1%, while Bagmati had the lowest at 1.2%. However, Bagmati contributed the most to the overall GDP at 35.8%, and Karnali the least at 4.3%.

2. Poverty

Recent data indicates a significant decline in poverty levels. As per the Nepal Living Standard Survey 2022/23, the poverty rate has dropped to 3.6%, a substantial decrease from previous years. This decline is attributed to increased remittance inflows and improved consumption levels. Sudurpaschim continues to have the highest poverty rate at 33.9%, while Province One has the lowest at 12.4%.

3. Inequality

Inequality, measured by the Gini Coefficient, remained a concern. The Gini Coefficient for Nepal is 0.3, indicating moderate inequality. Provinces One, Gandaki, and Karnali have the highest values at 0.4, suggesting greater income disparity. Province Two has the lowest Gini Coefficient at 0.2, reflecting a more equal income distribution.

4. Unemployment

The unemployment rate in Nepal varies significantly across provinces. As of FY2023, Province Two reported the highest unemployment rate at 20.1%, while Bagmati had the lowest at 7%. The national unemployment rate reflects ongoing challenges in creating sufficient employment opportunities for the growing labor force.

5. Life Expectancy

Life expectancy in Nepal has improved, with the national average at 70.8 years. Gandaki province has the highest life expectancy at 71.7 years, while Karnali has the lowest at 66.8 years. These figures highlight the variations in healthcare access and quality across different regions.

*FY = Fiscal Year*

The major macroeconomic indicators of the Federal State of Nepal can be represented by the help of the following schedule:

Economic Indicators	Fiscal Year 2018/19	Fiscal Year 2019/20	Fiscal Year 2020/21	Fiscal Year 2022/23*
GDP at Basic Price (Billion Rs.)	2921	3209	-	3948
GDP Growth Rate (%)	6.75	2.27	2.7*	1.9
GNP (Billion Rs.)	3498	3810	-	4475
PCI in GNI (US$)	1051	1097	1165*	1348
Rate of Inflation (%)	4.2	4.6	6*	6.5
Trade Balance as % of GDP	-38.2	-37.59	-	-11.6
Net Outstanding Public Debt as % of GDP	30.3	39.22	43.7*	35.5

*Estimates for FY 2020/21 and FY 2022/23 are based on available data.

Sources:

Economic Survey 2022/23, Government of Nepal

World Bank Development Indicators​

Trading Economics​

These indicators highlight both the progress and ongoing challenges in Nepal's economic landscape, including the significant role of remittances, the impact of trade deficits, and regional disparities in economic performance​​.