Nepal Credit to GDP
Domestic credit to private sector as % of GDP FS.AST.PRVT.GD.ZS
Nepal's credit to gdp was 92.62% in 2025, ranked 21st globally. This represents a 0.6% increase from 2024. Data from World Bank, covering 1960–2025.
Overview
Nepal's credit to gdp stood at 92.62% in 2025, a rise of +0.51% from 2024. Based on recent trends, this figure is projected to reach 92.62% by 2025. Nepal ranked 21st globally.
Since 1960, Nepal’s credit‑to‑GDP ratio has risen from a trough of 1.05 to a 2025 level of 92.62, placing the country 21st worldwide. The expansion accelerated after the 1990s liberalisation of the banking sector and peaked at 103.65 in 2021, briefly surpassing the United Kingdom’s 102.50 and approaching Chile’s 99.40. Over the 66‑year coverage period, the indicator shows a sustained upward trajectory, reflecting deeper financial intermediation, higher domestic borrowing and greater reliance on external financing for infrastructure. Compared with Finland’s 88.79, Nepal’s current level suggests a more rapid credit expansion relative to the size of its economy, though still below the historic high. The persistent increase in credit availability has supported growth but also raises concerns about debt sustainability as the economy expands. Continued improvement will likely depend on maintaining prudent regulatory oversight and diversifying funding sources, which could moderate the pace of future credit growth.
Data & projection
| Year | Credit to GDP | YoY change | Rank |
|---|---|---|---|
| 2027* trend | 91.67% | - | - |
| 2026* trend | 92.14% | - | - |
| 2025* trend | 92.62% | - | - |
| 2025 | 92.62% | +0.51% | #21 |
| 2024 | 92.11% | +0.55% | #106 |
| 2023 | 91.56% | −2.91% | #128 |
| 2022 | 94.47% | −9.18% | #136 |
| 2021 | 103.65% | +15.21% | #144 |
| 2020 | 88.44% | +9.49% | #133 |
| 2019 | 78.95% | +2.62% | #137 |
| 2018 | 76.32% | +7.14% | #135 |
| 2017 | 69.19% | −0.65% | #130 |
| 2016 | 69.84% | +12.93% | #133 |
| 2015 | 56.91% | +2.44% | #119 |
| 2014 | 54.47% | +4.00% | #110 |
| 2013 | 50.46% | +1.71% | #105 |
| 2012 | 48.75% | +2.33% | #101 |
| 2011 | 46.42% | −8.17% | #99 |
Detected Pattern
Analysis
Nepal matched the Stagflation Risk pattern in 2016. Historically, 38% of countries showing this pattern (117 out of 307) saw credit to gdp improve within 24 months. View full analysis →
Frequently Asked Questions
Nepal's credit to gdp was 92.62% in 2025. Ranked 21st globally. This represents a 0.6% increase from the previous year.
Nepal's credit to gdp peaked at 103.65% in 2021.
The lowest credit to gdp in Nepal was 1.05% in 1960.
Nepal ranks 21st globally in credit to gdp as of 2025.
The World Bank indicator code is FS.AST.PRVT.GD.ZS. Data sourced from World Bank.
Nepal's credit to gdp is projected to reach 92.62% by 2025 based on trend extrapolation.
The credit to gdp of Nepal in 2025 was 92.62%. This ranks 21st in the world.
Cite this page
@misc{historysaid_nepal_credit-to-gdp,
title = {Nepal Credit to GDP},
url = {https://historysaid.com/nepal/credit-to-gdp/},
publisher = {HistorySaid},
year = {2026}
}