In a new ADB report (Asia 2050—Realizing the Asian Century), Nepal’s per capita GDP (PPP) in 2050 is estimated to be US$3400 and 65 plus population is expected to be 10.6 percent of the total population in 2050. See the table below for corresponding figures of other South Asian countries.
| South Asian per capita GDP and 65+ population in 2050 | ||
| Country | per capita GDP (PPP, US$) | 65+ population |
| Bhutan | 48,600 | 15 |
| India | 41,700 | 13.7 |
| Sri Lanka | 34,700 | 21.4 |
| Bangladesh | 14,200 | 14.9 |
| Pakistan | 7,900 | 10 |
| Nepal | 3,400 | 10.6 |
| Afghanistan | 2,800 | 3.6 |
Nepal is one of the “Young Asia” that will have a large working age population compared to other nations in 2050, thus increasing potential for reaping demographic dividends. One of the lowest per capita income and one of the highest number of working age population would mean that it will have potentially cheaper factors of production. It indicates a good reason for investors to plan their investment strategy of investing in Nepal and other young South Asian nations accordingly. Additionally, Nepal’s geopolitical location (between China and India) will be attractive as well because as these nations become richer, wages will increase and markets will expand. Nepal will become the perfect location to manufacture and provide services to the Indian and Chinese population.
