Taksar News | Kathmandu___
Nepal has entered the list of the world’s top 100 economies by Gross Domestic Product (GDP), according to the latest World Economic Outlook report published by the International Monetary Fund (IMF). The report estimates Nepal’s GDP in 2025 at USD 46.08 billion, placing it at the 100th position globally.
In 2024, Nepal was ranked 103rd, and this year it has surpassed Latvia. However, it is important to note that this advancement is partly due to the absence of Sri Lanka’s updated GDP figures in the 2025 report. In the previous year, Sri Lanka was ranked 76th with a GDP of USD 83.72 billion.
India Ascends to Fourth-Largest Economy
The IMF’s projections show that India has overtaken Japan to become the world’s fourth-largest economy in 2025. India’s nominal GDP is projected to rise to USD 4.187 trillion, slightly ahead of Japan’s estimated USD 4.186 trillion. This growth is primarily fueled by robust private consumption, especially in rural areas. However, India’s growth forecast for 2025 has been slightly revised down to 6.2% from the earlier estimate of 6.5% due to rising trade tensions and global uncertainties.
Globally, the United States retains its position as the largest economy with a projected GDP of USD 30.5 trillion in 2025, followed by China at USD 19.2 trillion. Germany is expected to remain ahead of India with a nominal GDP of USD 4.74 trillion this year.
Historical Perspective: Nepal’s Economic Trajectory
Back in 1991, Nepal’s economy was valued at just USD 4.86 billion, yet it ranked 96th globally. When adjusted for the inclusion of Sri Lanka’s data in the current report, Nepal would now be ranked 101st.
In 1991, the top five global economies were the United States, Japan, Germany, France, and the United Kingdom, while China was in the 9th position and India in the 17th.
Despite steady progress, IMF data indicates that Nepal has not made a dramatic leap in the global economic landscape. The country has overtaken several small economies in Africa, Eastern Europe, and Latin America but still lags behind in broader economic transformation.
Global Economic Outlook
The IMF report also notes that the global fight against high inflation is nearly over, with inflation expected to fall from 6.7% in 2023 to 4.3% by 2025. In advanced economies, inflation is projected to reach around 2% by 2025. This moderation in inflation has been achieved with minimal impact on overall economic growth. As a result, major central banks such as the Federal Reserve and the European Central Bank have started to reduce interest rates.
