Nepal GDP per Capita

Latest nominal and PPP levels

In 2024 Nepal's GDP per capita was US$1,447.31 at current prices, while GDP per capita at purchasing power parity was US$5,740.78. The PPP figure is 3.97 times the nominal one. Total GDP was US$42.91 billion in the same year, and GNI per capita stood at US$1,470.00, close to the nominal GDP per capita figure. The gap between the two per capita measures reflects differences in domestic price levels relative to the United States.

Why the two measures diverge

Nominal GDP per capita converts output at market exchange rates. PPP converts it using price benchmarks that account for what money buys domestically. Nepal's price level is well below that of the United States, so the PPP measure is much larger. The ratio of 3.97 in 2024 is not fixed. It widened as the nominal figure rose from US$1,154.22 in 2020 to US$1,447.31 in 2024, a gain of 25.4 per cent, while the PPP figure rose from US$4,235.57 to US$5,740.78, a gain of 35.5 per cent over the same five years.

What each measure captures

Nominal GDP per capita is the reference for external comparisons: debt ratios, dollar-denominated trade values and remittance flows are all measured against it. Nepal's 2024 nominal figure of US$1,447.31 places it among lower-income economies by that yardstick. PPP GDP per capita of US$5,740.78 describes domestic purchasing power and is the more relevant measure for living standards, household consumption and poverty thresholds. Both series show the same long-run direction. Nominal GDP per capita rose from US$135.06 in 1980 to US$1,447.31 in 2024, and PPP from US$493.12 to US$5,740.78.

Decade patterns in both series

The 1990s were the weakest decade on both measures. Nominal GDP per capita grew 12.3 per cent between 1990 and 1999, from US$206.65 to US$232.07, and PPP grew 48.9 per cent, from US$885.14 to US$1,317.78. The 2000s were stronger: nominal growth of 106.6 per cent and PPP growth of 54.7 per cent. The 2010s added 92.1 per cent nominal and 85.8 per cent PPP. In the 2020s to date, nominal growth of 25.4 per cent compares with PPP growth of 35.5 per cent.

Reading the 2024 figures together

The 2024 nominal figure of US$1,447.31 is close to GNI per capita of US$1,470.00, a gap of US$22.69. PPP GDP per capita of US$5,740.78 is the more informative indicator of material living standards, but it does not describe the dollar value of output traded internationally. The two measures answer different questions and should be read together. Real GDP growth of 3.67 per cent in 2024 supports the direction of both series, though the 2020 contraction of 2.37 per cent shows how quickly per capita levels can stall.

• Nominal GDP per capita, 2024: US$1,447.31
• PPP GDP per capita, 2024: US$5,740.78
• Ratio, PPP to nominal: 3.97
• GNI per capita, 2024: US$1,470.00
• Nominal growth, 2020 to 2024: 25.4 per cent
• PPP growth, 2020 to 2024: 35.5 per cent

From a Low Base: The 1980s and 1990s

Nominal GDP per capita opened the series at USD 135.06 in 1980 and closed the decade at USD 205.74 in 1989, a rise of 52.3 per cent across ten years. The 1980s mean of USD 170.96 sits close to the decade minimum, indicating that most of the expansion occurred late in the period. PPP GDP per capita moved from USD 493.12 to USD 887.85 over the same span, growth of 80.0 per cent, with a decade mean of USD 692.33.

The 1990s marked the weakest expansion in the series. Nominal GDP per capita rose from USD 206.65 in 1990 to USD 232.07 in 1999, a gain of 12.3 per cent, while the decade mean of USD 215.95 barely exceeded the 1989 closing value. PPP GDP per capita advanced from USD 885.14 to USD 1,317.78, growth of 48.9 per cent. GNI per capita rose only 5.0 per cent across the decade, from USD 200 to USD 210, the smallest decadal gain recorded.

Acceleration: The 2000s and 2010s

The 2000s produced the fastest nominal expansion of any decade. GDP per capita climbed from USD 245.06 in 2000 to USD 506.35 in 2009, growth of 106.6 per cent, with a decade mean of USD 342.97. PPP GDP per capita rose from USD 1,406.03 to USD 2,175.50, a gain of 54.7 per cent. GNI per capita more than doubled, from USD 220 to USD 480, growth of 118.2 per cent. Aggregate GDP expanded 128.7 per cent over the decade, from USD 6.02 billion to USD 13.76 billion.

The 2010s sustained the momentum. Nominal GDP per capita moved from USD 626.42 in 2010 to USD 1,203.14 in 2019, growth of 92.1 per cent, and the decade mean of USD 899.61 exceeded the 2009 closing value by a wide margin. PPP GDP per capita rose from USD 2,293.74 to USD 4,260.67, growth of 85.8 per cent. GNI per capita gained 134.0 per cent, from USD 530 to USD 1,240, the largest decadal increase in that indicator. Real GDP growth averaged 5.01 per cent across the decade, the strongest decadal mean in the series.

The 2020s: A Shortened but Steep Climb

The 2020s cover five observed years. Nominal GDP per capita fell to USD 1,154.22 in 2020 from USD 1,203.14 in 2019, coinciding with a real GDP contraction of 2.37 per cent. Recovery followed: the value reached USD 1,447.31 in 2024, growth of 25.4 per cent from the 2020 opening, with a five-year mean of USD 1,324.51. PPP GDP per capita rose from USD 4,235.57 to USD 5,740.78, growth of 35.5 per cent, and GNI per capita advanced from USD 1,190 to USD 1,470, a gain of 23.5 per cent.

Real GDP growth averaged 2.75 per cent across 2020 to 2024, below the 5.01 per cent mean of the 2010s and the 4.86 per cent mean of the 1990s. The 2024 growth rate of 3.67 per cent sits below the decade maximum of 5.63 per cent. Aggregate GDP reached USD 42.91 billion in 2024, up 28.4 per cent from USD 33.43 billion in 2020.

Turning Points in Summary

• 1980s: nominal growth of 52.3 per cent; PPP growth of 80.0 per cent.
• 1990s: nominal growth of 12.3 per cent, the weakest decade; GNI growth of 5.0 per cent.
• 2000s: nominal growth of 106.6 per cent, the fastest decade; GNI growth of 118.2 per cent.
• 2010s: nominal growth of 92.1 per cent; GNI growth of 134.0 per cent.
• 2020s (five years): nominal growth of 25.4 per cent; PPP growth of 35.5 per cent.

The nominal series rose from USD 135.06 in 1980 to USD 1,447.31 in 2024, a multiple of roughly 10.7. The PPP series rose from USD 493.12 to USD 5,740.78, a multiple of roughly 11.6. The ratio of PPP to nominal value stood at about 3.97 in 2024, against 3.65 in 1980.

Nepal's GDP per capita reached USD 1,447.31 in 2024, up from USD 135.06 in 1980, a roughly tenfold increase in nominal terms. Over the same period, GDP per capita at purchasing power parity rose from USD 493.12 to USD 5,740.78. The gap between these two measures reflects a price level well below the developed-country average. The drivers behind this trajectory are structural: labour migration and remittances, a large but low-productivity agricultural sector, hydropower potential, a narrow export base, a persistent trade deficit, and weak tax revenue relative to output.

Remittances and Labour Migration

Remittances are the largest single external inflow into Nepal's economy, equivalent to roughly a quarter of GDP in recent years. They support household consumption and have kept the current account deficit narrower than the merchandise trade gap would imply. The effect on per capita income is direct: transfers raise disposable income without requiring domestic production. GNI per capita, at USD 1,470.00 in 2024, sits close to GDP per capita of USD 1,447.31, a small gap that reflects modest net factor income and transfer flows in the national accounts. Migration also removes working-age labour, which tempers measured output growth.

Agriculture and Hydropower

Agriculture employs a majority of the workforce but contributes a minority of GDP, so output per worker in the sector is low. This composition holds down aggregate GDP per capita: a large share of labour produces a small share of value added. Hydropower is the principal structural counterweight. Installed capacity has expanded and electricity has become a net export earner in the dry season, though seasonal variation limits annual revenue. GDP grew 3.67 per cent in 2024, a rate consistent with an economy where capital formation is constrained and growth depends heavily on services and construction rather than manufacturing.

Export Base and Trade Deficit

Nepal's merchandise exports are narrow, dominated by a small number of items, and the trade deficit is structural. Imports of fuel, machinery and consumer goods exceed exports by a wide margin each year. The deficit is financed largely by remittances and foreign aid, which is why the balance of payments has remained manageable despite persistent goods shortfalls. GDP rose from USD 33.43 billion in 2020 to USD 42.91 billion in 2024, a 28.4 per cent increase, but much of the increment reflects consumption financed from abroad rather than domestic value added.

Tax Revenue and Fiscal Capacity

Tax revenue is low relative to GDP, which limits public investment in infrastructure and human capital. A narrow tax base, a large informal economy and weak compliance constrain the fiscal space available to raise productivity. The result is a growth path that depends on remittance-financed consumption and hydropower construction rather than on broad-based industrial expansion. GDP per capita at PPP rose 35.5 per cent between 2020 and 2024, from USD 4,235.57 to USD 5,740.78, a pace that reflects recovery and remittance inflows more than structural transformation.

Regional position on GDP per capita

Nepal's GDP per capita reached USD 1,447.31 in 2024, up from USD 1,154.22 in 2020, a 25.4 per cent increase across the five recorded years. The absolute level remains low by South Asian standards, where India and Bangladesh report substantially higher dollar incomes and Sri Lanka sits further ahead again. The comparison is sensitive to exchange-rate conversion: Nepal's GDP per capita at purchasing power parity was USD 5,740.78 in 2024, roughly four times the nominal figure, reflecting the large gap between domestic price levels and those of the United States. On the PPP measure the distance to regional peers narrows considerably.

Growth record against the region

Decade growth in nominal GDP per capita was 52.3 per cent in the 1980s, 12.3 per cent in the 1990s, 106.6 per cent in the 2000s, 92.1 per cent in the 2010s and 25.4 per cent in the 2020s to date. The 1990s stand out as the weakest decade, with the mean value of USD 215.95 barely above the 1989 figure of USD 205.74. Real GDP growth averaged 5.01 per cent in the 2010s, a pace broadly in line with regional peers, but the 2020s mean of 2.75 per cent includes the 2020 contraction of 2.37 per cent. That interruption, tied to the pandemic, was shallower than in several South Asian economies but the recovery has been slower.

GNI per capita as a cross-check

GNI per capita was USD 1,470.00 in 2024, marginally above GDP per capita. The two measures have tracked closely across four decades: GNI per capita rose from USD 130.00 in 1980 to USD 200.00 in 1989, then to USD 1,240.00 in 2019. The small gap between the 2024 GDP figure of USD 1,447.31 and the GNI figure of USD 1,470.00 indicates that net primary income flows, chiefly remittances, are modest relative to the size of the economy in per capita terms. Remittances are large in gross terms, at roughly a quarter of GDP, but much of the inflow is offset by outflows and by the fact that migrant workers are counted in the population base.

What the average conceals

A per capita figure divides national output by total population and says nothing about how that output is distributed. Nepal's consumption is concentrated in urban areas, particularly the Kathmandu Valley, while rural western provinces report incomes well below the national mean. A large share of employment, commonly estimated at around 60 per cent of the workforce, is in agriculture, much of it subsistence production that enters GDP at imputed values. The 2024 GDP of USD 42.91 billion, divided across a population of roughly 30 million, therefore averages formal and informal activity, market and non-market output, into a single number.

Non-market output and limits of the measure

Unpaid household work, water collection, fuel gathering and subsistence farming for own consumption are excluded or undervalued in the national accounts. Nepal's subsistence sector and its large informal economy mean measured GDP per capita understates actual consumption for many households. Conversely, the nominal figure of USD 1,447.31 is depressed by a low price level, which is why the PPP value of USD 5,740.78 is the more appropriate comparator for living standards. Neither measure captures health, education or environmental quality, and the gap between the 1980 value of USD 135.06 and the 2024 figure describes aggregate change, not the experience of any particular household.