Key Trends - Nepal 2024

In 2024, several key trends are shaping Nepal's economic and social landscape:

1. Economic Growth: Nepal's economy is rebounding, with growth forecasted at 3.3% for FY24, up from 1.9% in FY23. The services sector, particularly tourism, accommodation, and food services, has seen significant growth, supported by an increase in tourist arrivals. Additionally, the industrial sector has benefitted from higher hydroelectric production.

2. Inflation and Trade: Consumer price inflation varied across regions, with the Kathmandu Valley at 4.96% and the Hill region at 5.58%. While the wholesale price inflation dropped significantly, merchandise exports decreased by 7.1%, and imports fell by 2.3%. Notably, exports to China surged by 338.8%.

3. Retail Market: The retail sector in Nepal is evolving, with significant growth expected in various segments, including food and beverages, personal and household care, and apparel. Supermarkets, hypermarkets, and online distribution channels are becoming increasingly prominent.

4. Digital Transformation: The digital market in Nepal is expanding, with increasing revenues from software, CRM, email marketing, and social media advertising. This growth reflects broader trends in digital adoption and the rising importance of digital tools and platforms for businesses.

5. Electric Vehicle Market: The electric vehicle (EV) market in Nepal is poised for growth, driven by favorable policies and increasing consumer interest. There is a notable increase in imports of electric vehicles, supported by lower tax rates. The market is expected to diversify across different types of EVs and propulsion technologies.

These trends highlight Nepal's dynamic economic environment, with significant developments in key sectors driving growth and transformation in 2024.