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. Foreign trade represents around 48% of GDP (World Bank, latest data available), and the country is a member of the WTO. However, significant barriers to the development of trade persist, including lack of skilled labor, advanced technology, and geographic accessibility. Nepal’s exports are led by soya-bean oil and its fractions (14.4%), palm oil and its fractions (14.3%), yarn of synthetic staple fibers (6.9%), carpets and other textile floor coverings (6.5%), fruit juices (including grape must) and vegetables (3.7%); whereas imports comprise chiefly petroleum oils (16.6%), petroleum gas and other gaseous hydrocarbons (3.8%), gold (2.9%), soya-bean oil and its fractions (whether or not) (2.5%), telephone sets (2.4% - data Comtrade 2022).
India is by far Nepal’s main trading partner, accounting for 71.9% of total exports and 63.2% of imports. Other major export partners are the United States (11.3%), Germany (2.5%), Türkiye (2.0%), and the United Kingdom (1.8%); whereas imports also come from China (13.5%), Indonesia (2.6%), the United Arab Emirates (2.3%), and the United States (2.1%).
The Nepalese trade balance is structurally in deficit. In 2022, the country exported USD 1.3 billion worth of goods against USD 13.7 billion in imports. Concerning services, exports reached USD 1.2 billion vis-à-vis 1.9 billion in imports (data WTO). For the year, the World Bank estimated the trade deficit to represent around 35.9% of GDP, compared to 32.8% one year earlier. According to statistics from the Department of Customs, foreign trade declined by 2.75% to NPR 984.77 billion in the first seven months of FY 2023/24. Imports decreased by 2.31%, amounting to goods worth NPR 897.94 billion. Despite a 7.07% decrease in exports, there was some improvement in the overall trade deficit, which stood at NPR 811.11 billion.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 12,340 | 9,856 | 15,893 | 13,735 | 12,476 |
Exports of Goods (million USD) | 968 | 856 | 1,684 | 1,296 | 1,015 |
Imports of Services (million USD) | 1,718 | 1,097 | 1,565 | 2,027 | 2,274 |
Exports of Services (million USD) | 1,615 | 881 | 798 | 1,235 | 1,669 |
Imports of Goods and Services (Annual % Change) | 6 | -21 | 19 | 15 | n/a |
Exports of Goods and Services (Annual % Change) | 6 | -16 | -21 | 34 | n/a |
Trade Balance (million USD) | -11,007 | -8,707 | -13,707 | -11,929 | n/a |
Foreign Trade (in % of GDP) | 49 | 41 | 43 | 49 | n/a |
Imports of Goods and Services (in % of GDP) | 41 | 34 | 38 | 43 | n/a |
Exports of Goods and Services (in % of GDP) | 8 | 7 | 5 | 7 | n/a |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2022 |
---|---|
India | 71.9% |
United States | 11.3% |
Germany | 2.5% |
Türkiye | 2.0% |
United Kingdom | 1.8% |
France | 1.0% |
Australia | 0.8% |
Japan | 0.8% |
Canada | 0.8% |
Italy | 0.8% |
Netherlands | 0.6% |
Denmark | 0.6% |
China | 0.4% |
Bangladesh | 0.4% |
Switzerland | 0.3% |
Bhutan | 0.3% |
United Arab Emirates | 0.3% |
Belgium | 0.3% |
Hong Kong SAR, China | 0.2% |
Austria | 0.2% |
See More Countries | 10.4% |
Main Suppliers (% of Imports) |
2022 |
---|---|
India | 63.2% |
China | 13.5% |
Indonesia | 2.6% |
United Arab Emirates | 2.3% |
United States | 2.1% |
Argentina | 1.7% |
Australia | 1.0% |
Ukraine | 1.0% |
Malaysia | 0.9% |
Qatar | 0.7% |
Thailand | 0.7% |
Brazil | 0.6% |
Saudi Arabia | 0.6% |
Belgium | 0.6% |
Jordan | 0.6% |
Vietnam | 0.5% |
Oman | 0.5% |
South Korea | 0.5% |
France | 0.5% |
Bangladesh | 0.4% |
See More Countries | 16.2% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import-Export Flows
1.2 bn USD of services exported in 2022 | |
---|---|
45.75% | |
30.84% | |
10.06% | |
7.13% | |
5.36% | |
0.86% |
2.0 bn USD of services imported in 2022 | |
---|---|
47.17% | |
34.46% | |
12.04% | |
5.25% | |
0.59% | |
0.49% |
Source: United Nations Statistics Division, Latest Available Data
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