That dollar amount represents a 66.4% gain from $781.1 million five years earlier in 2018.
Year over year, the value of Nepal’s total exports reduced by -22% compared to $1.67 billion during 2021.
Applying a continental perspective, 77.5% of Nepal’s exports by value was delivered to countries in Asia while 12.1% was sold to importers in North America. Nepal shipped another 9.2% worth of goods to Europe.
Smaller percentages went to buyers in Oceania (0.9%) led by Australia and New Zealand, Africa (0.2%), and Latin America (0.1%) excluding Mexico but including the Caribbean.
Officially named the Federal Democratic Republic of Nepal, Nepal is a land-locked country surrounded to its east, south and west by India and to its north by the People’s Republic of China.
Nepal had a population of about 30.2 million residents living in a region that boasts eight of the world’s ten highest mountains.
Nepal’s Top Trading Partners
Below is a list of Nepal’s top 15 trade partners that bought the most Nepalese shipments by dollar value during 2022. Also shown is each importing country’s percentage share of total exported goods from Nepal.
- India: US$934.8 million (71.9% of total Nepalese exports)
- United States: $147.1 million (11.3%)
- Germany: $32.6 million (2.5%)
- Türkiye: $26.1 million (2%)
- United Kingdom: $23.8 million (1.8%)
- France: $13.2 million (1%)
- Australia: $10.8 million (0.8%)
- Japan: $10.4 million (0.8%)
- Canada: $10.2 million (0.8%)
- Italy: $9.9 million (0.8%)
- Netherlands: $7.8 million (0.6%)
- Denmark: $7.2 million (0.6%)
- China: $5.4 million (0.4%)
- Bangladesh: $4.6 million (0.4%)
- Switzerland: $4.4 million (0.3%)
By value, the bulk of Nepalese shipments by value (96.1%) was delivered to the above-listed trading partners.
The fastest-growing customers for products exported from Nepal were buyers in Netherlands (up 39.3% from 2021), Denmark (up 38.3%), Japan (up 33.2%), Canada (up 27%), Italy (up 23.3%) and Türkiye (up 20.5%).
There was a trio of year-over-year decliners among major importers of Nepalese products. These were mainland China (down -35.6% from 2021), India (down -29.9%) then Bangladesh (down -22.5%).
Countries Causing Nepal’s Largest Trade Deficits
Nepal incurred an overall -US$12.4 billion trade deficit for 2022, reducing by -12.1% from -$14.1 billion one year earlier in 2021.
As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.
It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.
In 2022, Nepal incurred the highest trade deficits with the following countries.
- India: -US$7.7 billion (country-specific trade deficit in 2022)
- mainland China: -$1.8 billion
- Indonesia: -$352.2 million
- United Arab Emirates: -$317.3 million
- Argentina: -$235.5 million
- United States: -$146.1 million
- Ukraine: -$137.1 million
- Australia: -$130.9 million
- Malaysia: -$121.8 million
- Qatar: -$96.4 million
Among Nepal’s trading partners that cause the greatest negative trade balances, only the Nepalese deficit with Qatar (up 1,249%) grew from 2021 to 2022.
These cashflow deficiencies clearly indicate Nepal’s competitive disadvantages with the above countries, but also represent key opportunities for Nepal to develop country-specific strategies to strengthen its overall position in international trade.
Countries Generating Nepal’s Best Trade Surpluses
Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.
In 2022, Nepal incurred the highest trade surpluses with the following countries.
- Denmark: US$3.6 million (country-specific trade surplus in 2022)
- Cambodia: $854,000
- Algeria: $582,000
- Norway: $480,000
- Niger: $459,000
- Uruguay: $335,000
- Romania: $220,000
- Guinea: $191,000
- Maldives: $147,000
- Croatia: $125,000
Among Nepal’s trading partners that generate the greatest positive trade balances, only Nepalese surpluses with Cambodia (up 967.5%), Maldives (up 674%) and Algeria (up 6%) recorded percentage gains from 2021 to 2022.
These positive cashflow streams clearly indicate Nepal’s competitive advantages with the above countries, but also represent key opportunities for Nepal to develop country-specific strategies to optimize its overall position in international trade.
Nepalese Export Companies
Not one Nepalese corporation ranks among the Forbes Global 2000.
Wikipedia lists exports-related companies from Nepal. Selected examples are shown below.
- Chaudhary Group (conglomerate)
- Citizens Bank International (commercial bank)
- Deurali-Janta Pharmaceuticals (drugs and medicines)
- Giribandhu Tea Estate (beverages)
- Hulas Motors (vehicles)
- IME Group (conglomerate)
- Krishna Pauroti (bakery)
- Nepal Oil Corporation (oil, gas)
See also Nepal’s Top 10 Imports, Nepal’s Top 10 Exports, India’s Top Trading Partners, Palm Oil Exports by Country and Top Cardamoms Exports & Imports by Country Plus Average Prices
Research Sources:
Central Intelligence Agency, The World Factbook Country Profiles. Accessed on October 27, 2023
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on October 27, 2023
International Monetary Fund, World Economic Outlook Databases (GDP based on Purchasing Power Parity). Accessed on October 27, 2023
International Trade Centre, Trade Map. Accessed on October 27, 2023
Investopedia, Net Exports Definition. Accessed on October 27, 2023
Wikipedia, List of Companies of Nepal. Accessed on October 27, 2023
Wikipedia, Nepal. Accessed on October 27, 2023