Nepal’s Economic Growth Improves: Increase in GDP and Per Capita Income

Kathmandu, Nepal – The latest economic data released by the Nepal government indicates a significant rise in the country’s Gross Domestic Product (GDP) and Per Capita GDP for the fiscal year 2023/24. Nepal’s GDP has surpassed NPR 57 trillion, while Per Capita GDP has also reached a historical high.

GDP Growth at 3.87%: A Positive Sign

In fiscal year 2023/24, Nepal’s total GDP reached NPR 570,484 crore (NPR 57.05 trillion), marking an increase of 6.6% compared to the previous fiscal year 2022/23, which stood at NPR 534,852.8 crore (NPR 53.49 trillion).

Additionally, Nepal’s economic growth rate has improved to 3.87%, nearly double the previous year’s 1.95%. However, the growth rate still lags behind the 5.63% recorded in 2021/22, highlighting that the economy has not fully recovered to pre-pandemic levels.

Increase in Per Capita GDP

Nepal’s Per Capita GDP has reached $1,433.93 in 2023/24, reflecting a 3.26% increase from the previous year’s $1,388.70.

While this improvement signals better living standards, Nepal still lags behind its South Asian counterparts. India’s Per Capita GDP has surpassed $2,600, and Bangladesh has crossed $2,500, placing Nepal in a relatively weaker position in terms of economic growth and individual income.

Key Factors Behind GDP and Per Capita Income Growth

Economic analysts highlight several key drivers behind this increase:
✅ Revival of the Tourism Industry – The post-COVID-19 recovery in Nepal’s tourism sector has positively impacted economic growth.
✅ Increase in Remittance Inflows – The growing number of Nepalis working abroad has contributed significantly to domestic consumption and GDP growth.
✅ Infrastructure Development – Investments in roads, hydropower, and digital infrastructure have fueled economic expansion.
✅ Growth in Agriculture – Modern agricultural techniques and climate adaptation programs have boosted production.

Economic Challenges Persist

Despite improvements in GDP and Per Capita GDP, Nepal faces several economic hurdles:
📉 Trade Deficit – Nepal remains highly dependent on imports, while exports remain weak, increasing the trade imbalance.
📉 Unemployment and Labor Migration – A significant portion of the workforce is migrating abroad, creating long-term economic sustainability concerns.
📉 Rising Inflation – Increasing prices of goods and services continue to reduce consumer purchasing power.

The Path Ahead for Nepal’s Economy

To sustain and accelerate economic growth, Nepal needs to promote exports, encourage domestic production, and implement investment-friendly policies. Sectors like tourism, hydropower, and information technology hold great potential for long-term economic expansion.