NEPAL

Country risk rating

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD28.8bn (World ranking 102, World Bank 2018)
Population 28.1mn (World ranking 50, World Bank 2018)
Form of state Federal Democratic Republic
Head of government Khadga Prasad Sharma OLI (Prime Minister)
Next elections 2022, legislative
  • Proximity to India and China, resulting in foreign investment from both countries
  • China’s Belt and Road Initiative creates many opportunities for Nepal
  • High levels of remittances and foreign aid should continue to support Nepal’s economy in the medium term
  • A landlocked country with many almost unreachable regions
  • High economic dependence on India; the Nepalese rupee is pegged to the Indian rupee (at the rate NPR1.60 : INR1.00)
  • Frequent protests against the political elite and high living costs
  • Legislative power that is undermined by multiple political parties, which jeopardizes progress on crucial reforms
  • Weak business environment, including feeble rule of law and a high level of perceived corruption

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

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