The economy of Nepal is mostly agriculture.Around 80% of the population are employed in agricultural sector.Which accounts for about 50% of the countries gross domestic product.In agriculture the green evolution has major impact on Nepal.

The 1980s saw a good increase in manufacturing. Production which is mainly concentrated mainly in Terai towns.Accounts for almost 10% of the GDP.

The early 1990s have seen not only a continuation but also an increase in Nepal's trade deficit with other countries.External trade continues with China,India and various other countries.But the largest single trading partner being India.Nepal's trade deficit continues to rise since 1991/1992.This is because of massive increase in imports compared to exports.Exports have remained relatively stagnent.But Government is still trying to solve the trade deficit.And Government has taken intiative to promote exports.And giving more and more facilities to entrepreneurs. Also,government of Nepal is trying to inflow the foreign investment in the country.

Nepal's main exports are agricultural products. Currently,Nepal is exporting Carpets, Garments, Jewellery, Handicrafts and other various items.But tourism is the largest foreign currency earning industry.It accounts for around 15% of countries total foreign exchange earnings.There remains immense potential for tourism to grow still further.Because of its natural beauty. Nepal has vast potential for the development of hydro electric power. Development in Nepal is concentrated on improvement in communcations, agriculture and education. Neverthless steep population growth will continue pressure on agricultural potetial.Much remains to be done to increase the numbers of hospitals and doctors.

Still Nepal is a least developed country.