[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109130-en":3,"doc-seo-109130-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},109130,687197100911,"Himbo","https://ap-avatar.wpscdn.com/avatar/a000239b6f1da00475?x-image-process=image/resize,m_fixed,w_180,h_180&k=1785132997149421697",8,"Research & Report","Nepal Country Economic Memorandum 2025 - Contents - Growth, Migration, Trade, Hydropower, Digital Sector","Nepal Country Economic Memorandum 2025 provides an analytical overview of Nepal’s growth performance and the constraints shaping future development. It examines Nepal’s transition to lower-middle income status, growth accounting and key drivers, labor market dynamics, and future growth prospects. The report also explores international migration for employment and welfare, including costs, remittances, and reintegration challenges. In addition, it analyzes real exchange rates, trade policy, export performance, and policy options. It further highlights hydropower as a catalyst for stronger growth and reviews the digital sector’s role in productivity, job creation, and policy priorities for closing adoption gaps.","Disc losure Authorized  \nUNLOCKING  \nPOTENTIAL  \nNEPAL COUNTRY ECONOMIC MEMORANDUM 2025   \nPub lic Disclosure Authorized Pub lic Disclosure Authorized  \nGROWTH  \nNEPAL’S  \nPublic  \n© 2025 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW  \nWashington DC 20433 Telephone: 202-473-1000  \n[Internet: ](Internet: www.worldbank.org)[www.worldbank.org](Internet: www.worldbank.org)  \nThis work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent.  \nThe World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The citation of works authored by others does not mean the World Bank endorses the views expressed by those authors orthe content of their works.  \nNothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.  \nRights and Permissions  \nThe material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given.  \nAny queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; [e-mail: ](e-mail: pubrights@worldbank.org)[pubrights@worldbank.org](e-mail: pubrights@worldbank.org).  \nGraphic design: Karlien Truyens  \nContents  \nAcknowledgements VII  \nExecutive Summary VIII  \nCHAPTER 1. Facts of Growth 1  \n1.1. Nepal’s journey to lower-middle income status 2  \n1.2. Growth accounting and drivers 5  \n1.2.1. Expenditure approach 6  \n1.2.2. Production approach 12  \n1.2.3. Long-term growth 14  \n1.3. Labor market developments 16  \n1.4. Looking ahead: Drivers of future growth 19  \nCHAPTER 2. International Migration for Employment and Welfare 22  \n2.1. International migration remains important, with increasing economic returns 23  \n2.1.1. Remittances contributed significantly to reducing poverty 23  \n2.2. Pre-departure: The factors shaping the migration and destination choice 26  \n2.2.1. Migrants face high costs before departure 26  \n2.2.2. Socioeconomic factors affect the destination choice 27  \n2.3. During migration: The benefits for migrant-sending communities and households 30  \n2.3.1. Remittances strengthen household resilience and affect migrants’ home-communities 30  \n2.3.2. But migration comes with considerable risks 35  \n2.4. Post-migration: Remigration and reassimilation in the labor market 36  \n2.4.1. Migrants struggle to effectively reassimilate 36  \n2.5. Looking ahead: Reducing costs, increasing benefits, boosting long-term growth 37  \nCHAPTER 3. Real Exchange Rates, Trade Policy, and Exports in Nepal 44  \n3.1. Introduction 45  \n3.2. The effect of bilateral RERs and trade policy on firm-level exports 47  \n3.2.1. Overview of firm-level data in Nepal 47  \n3.2.2. Bilateral exchange rates and exports 49  \n3.2.3. Domestic trade policy and exports 49  \n3.2.4. Partner country trade policy and exports 50  \n3.3. The effect of remittances on REER dynamics 52  \n3.4. Looking ahead: Policy recommendations to boost exports 54  \nNepal Country Economic Memorandum I I  \nCHA","cbCainz6U8wMuC7S","https://ap.wps.com/l/cbCainz6U8wMuC7S","pdf",10224365,4,1,144,"English","en",105,"# Executive Summary\n# Chapter 1. Facts of Growth\n## Nepal’s journey to lower-middle income status\n## Growth accounting and drivers\n## Labor market developments\n## Looking ahead: Drivers of future growth\n# Chapter 2. International Migration for Employment and Welfare\n## International migration and economic returns\n## Pre-departure factors\n## During migration: benefits and risks\n## Post-migration: remigration and reassimilation\n## Looking ahead: reducing costs and boosting growth\n# Chapter 3. Real Exchange Rates, Trade Policy, and Exports in Nepal\n## Effect of bilateral RERs and trade policy on exports\n## Effect of remittances on REER dynamics\n## Looking ahead: policy recommendations to boost exports\n# Chapter 4. Unlocking Nepal’s Hydropower Potential to Enable Stronger Growth\n## Current state of the hydropower sector\n## Key impediments to development\n## Avenues for growth through hydropower\n## Looking ahead: boosting hydroelectricity\n# Chapter 5. The Digital Sector: A Driver of Growth and Job Creation\n## Current state of Nepal’s digital sector\n## Impediments to digital adoption\n## How digital technologies can boost growth and jobs\n## Looking ahead: policy recommendation to close gaps","[{\"question\":\"What growth topics does the memorandum cover for Nepal in 2025?\",\"answer\":\"It reviews Nepal’s move to lower-middle income status, growth accounting and drivers, labor market developments, and the likely drivers of future growth.\"},{\"question\":\"How does the report analyze international migration and welfare outcomes?\",\"answer\":\"It studies migration’s economic returns, the role of remittances in poverty reduction, pre-departure and destination choices, benefits and risks during migration, and reintegration in the labor market.\"},{\"question\":\"Which sectors does the report highlight for enabling stronger growth beyond macroeconomic themes?\",\"answer\":\"It focuses on hydropower, detailing current conditions, impediments, and pathways for growth, and it examines the digital sector as a driver of productivity, job creation, and adoption policy 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