How Has Nepal Been Going?
Economics Explained
Jun 21, 2026
While Nepal’s youth-led uprising successfully ousted a corrupt regime, the nation now faces the grueling task of economic reconstruction. The country must navigate the loss of preferential trade status as it graduates from 'least developed' status, all while managing high unemployment and the need to pivot from a remittance-based economy to one powered by hydroelectric exports.
Key insight: Foreign remittances from Nepalese workers abroad account for over 26% of the nation's entire GDP, effectively driving a quarter of the country's economic growth.
