The Economy of Nepal
Remittances: Nepal's Lifeline
Money sent home by Nepalis working abroad equals roughly a quarter of GDP, among the highest shares in the world.
Labour is Nepal’s biggest export.
Scale
Remittances are about a quarter of GDP, and reach most households.
Destinations
Workers go to Malaysia, Gulf countries, India and, increasingly, Japan, Korea and Europe.
Impact
Remittances lifted many households out of poverty and financed consumption and education.
Risks
Dependence on foreign labour markets and the loss of young workers weaken the home economy.
A monthly transfer
A worker in Qatar sends money to his village in eastern Nepal.
Believing remittances build productive investment automatically
Much is spent on consumption and housing.
Key takeaways
- Remittances are ~25% of GDP.
- Workers go to Malaysia and the Gulf.
- Households gain.
- Dependence brings risk.
No recording for this one yet - EconReader can read it aloud for you.