Country profiles:
Although trade policies were modified significantly after the change of government, the country seems keen to open its economy further to foreign trade and develop its exports. In 2021, foreign trade represented 44% of GDP (World Bank, 2023). The average applied tariff rate is 11.6% (Trading Economics, 2023) and companies that export more than 90% of their goods are exempt from customs duties, excise duties, and sales taxes. The country is a member of WTO. However, significant barriers to the development of trade persist, including lack of skilled labour, advanced technology, and geographic accessibility.
Nepal’s exports are led by soybean oil (35.8% of all exports in 2021), palm oil (15.5%) and yarn of synthetics staple fibres (4.4%). According to the latest Comtrade data, India is by far the main trading partner with 80.1% of all exports in 2021 (followed by the USA with 8%) and 60.5% of all imports the same year (followed by China with 15.1%).
The Nepalese trade balance is structurally in deficit (USD -13.7 billion in 2021, the widest since 2014). In 2021, exports reached USD 2.45 billion USD while imports reached 17.43 billion USD, resulting in a deficit of 14.98 billion USD (WTO and World Bank, 2023).
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 10,345 | 12,712 | 12,340 | 9,856 | 15,893 |
Exports of Goods (million USD) | 742 | 786 | 968 | 856 | 1,684 |
Imports of Services (million USD) | 1,591 | 1,774 | 1,687 | 1,074 | 1,541 |
Exports of Services (million USD) | 1,383 | 1,477 | 1,512 | 830 | 770 |
Imports of Goods and Services (Annual % Change) | 28 | 19 | 6 | -21 | 16 |
Exports of Goods and Services (Annual % Change) | 9 | 8 | 6 | -16 | -21 |
Trade Balance (million USD) | -9,365 | -11,931 | -11,007 | -8,707 | -13,707 |
Foreign Trade (in % of GDP) | 45 | 48 | 49 | 41 | 44 |
Imports of Goods and Services (in % of GDP) | 37 | 41 | 41 | 34 | 39 |
Exports of Goods and Services (in % of GDP) | 8 | 8 | 8 | 7 | 5 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2021 |
---|---|
India | 80.1% |
United States | 8.0% |
Germany | 1.8% |
United Kingdom | 1.4% |
Türkiye | 1.3% |
France | 0.8% |
Australia | 0.6% |
China | 0.5% |
Italy | 0.5% |
Canada | 0.5% |
Japan | 0.5% |
Bhutan | 0.4% |
Bangladesh | 0.4% |
Netherlands | 0.3% |
Denmark | 0.3% |
Switzerland | 0.2% |
United Arab Emirates | 0.2% |
Belgium | 0.2% |
Hong Kong SAR, China | 0.2% |
Austria | 0.1% |
See More Countries | 7.5% |
Main Suppliers (% of Imports) |
2021 |
---|---|
India | 60.5% |
China | 15.1% |
Argentina | 2.9% |
United Arab Emirates | 2.6% |
Indonesia | 2.3% |
United States | 1.9% |
Australia | 1.4% |
Ukraine | 1.3% |
Malaysia | 0.9% |
South Korea | 0.8% |
Bangladesh | 0.8% |
Canada | 0.7% |
Türkiye | 0.6% |
Thailand | 0.6% |
Paraguay | 0.5% |
Vietnam | 0.5% |
Saudi Arabia | 0.5% |
South Africa | 0.5% |
Switzerland | 0.4% |
Brazil | 0.4% |
See More Countries | 16.6% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows
1.6 bn USD of services exported in 2019 | |
---|---|
42.90% | |
31.10% | |
11.42% | |
6.87% | |
6.74% | |
0.96% |
1.7 bn USD of services imported in 2019 | |
---|---|
41.16% | |
36.13% | |
14.54% | |
4.02% | |
2.37% | |
1.78% |
Source: United Nations Statistics Division, Latest Available Data
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Latest Update: September 2023
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