Nepal cuts multidimensional poverty by half in a decade

Overview

Updated Yesterday

Nepal cut its multidimensional poverty rate from 30.1% in 2014 to 13.9% in 2024/25 — halving, in a decade, the share of people who lack basic health care, schooling, and living standards. The latest Global Multidimensional Poverty Index from UNDP and OPHI counts 4.11 million Nepalis in poverty, down from 8.32 million.

The gains aren't guaranteed. Another 15.5% of Nepalis — about 4.6 million people — are vulnerable to falling back into poverty. Nepal's achievement also stands against a global first: the number of multidimensionally poor people worldwide rose by 51.5 million, the first increase since the index launched in 2010.

Why it matters

Nepal shows low-income countries can halve poverty in about a decade, but 4.6 million Nepalis remain one shock from falling back.

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Key Indicators

13.9%

Multidimensional poverty headcount

Down from 30.1% in 2014; 4.1 million Nepalis remain poor.

4.11M

Nepalis living in multidimensional poverty

Down from 8.32 million in 2014.

0.056

MPI value

Down from 0.133 in 2014 — a reduction of nearly 58%.

15.5%

Vulnerable to multidimensional poverty

About 4.6 million Nepalis at risk of falling back into poverty.

1.2B

Multidimensionally poor worldwide

18.9% of people across 108 countries; rose 51.5 million — the first increase since 2010.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

People Involved

Sabina Alkire

Director, Oxford Poverty and Human Development Initiative

Co-developer of the Global Multidimensional Poverty Index

Organizations Involved

UN Development Programme (UNDP)

United Nations agency

Co-publisher of the 2026 Global Multidimensional Poverty Index

UN development agency that co-develops the Global MPI with OPHI and publishes the annual report.

Oxford Poverty and Human Development Initiative

Research initiative at the University of Oxford

Co-developer of the Global Multidimensional Poverty Index

Oxford research group that created the Global MPI methodology with UNDP.

Timeline

2006 October 2026

7 events Latest: Yesterday

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October 2026
Report confirms poverty halved
Latest Report Release

2026 Global MPI shows Nepal's poverty at 13.9% in 2024/25, down from 30.1% in 2014.
Yesterday
2022
Pace slows: 16.4%
Measurement

DHS records 16.4% headcount, slower than prior periods.
2022
2019
Steepest decline: 17.5%
Measurement

MICS survey shows 17.5% headcount, the steepest fall in the series.
2019
2016
Poverty below 26%
Measurement

DHS shows 25.8% headcount, continuing the steady decline.
2016
2014
Baseline year: 30.1%
Measurement

UNICEF Multiple Indicator Cluster Survey records 30.1% headcount.
2014
2011
Poverty falls to 39.2%
Measurement

Second DHS records 39.2% headcount, down 19 points from 2006.
2011
2006
First MPI measurement: 58.3%
Measurement

Demographic and Health Survey shows 58.3% of Nepalis in multidimensional poverty.
2006

Scenarios

Nepal's poverty rate falls to single digits

Possible Resolves by End of 2028

Discussed by: Shared UNDP/OPHI assessment noting Nepal sustained poverty decline across four consecutive survey periods, making it one of 33 countries to halve MPI in under 15 years.

If the recent pace holds, Nepal's next national survey could record headcount below 10%. The 2022-2024/25 period showed a 2.5-point decline, slower than the 2014-2019 stretch but still clearly downward. The 4.6 million vulnerable Nepalis would need to hold steady or shrink for this to land.

Nepal's progress stalls or reverses

Unlikely Resolves by End of 2028

Discussed by: OPHI and UNDP flag Nepal's 4.6 million vulnerable people as a risk; the 2026 global MPI shows poverty rose worldwide for the first time since 2010.

A remittance decline, climate disaster, or political shock could push a share of the 15.5% vulnerable population back below the poverty line. The global MPI's first-ever rise demonstrates that poverty gains can reverse when economies contract or shocks hit. If Nepal's headcount rises above 13.9%, the decade of progress would be broken.

Nepal's poverty falls more slowly, landing between 10% and 13.9%

Likely Resolves by End of 2028

Discussed by: Analysis of survey data showing the pace slowed from the 2014-2019 period to the 2022-2024/25 period.

The fastest reductions came early, when poverty was more widespread and gains easier. The remaining poor tend to have deeper, multiple deprivations that are harder to address. If Nepal keeps reducing poverty at about one point per year, the next survey would land in the 10-12% range.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1993-2008

Vietnam's Doi Moi poverty reduction (1990s-2000s)

After the Doi Moi market reforms of the late 1980s, Vietnam's economy grew rapidly for two decades. The share of Vietnamese living in poverty fell from more than half the population in the early 1990s to about one in six by the late 2000s.

Then

Growth in agriculture and manufacturing lifted tens of millions of people above the poverty line.

Now

Vietnam became a lower-middle-income country and sustained poverty reduction into the 2010s.

Why this matters now

Vietnam is the clearest precedent for what Nepal is doing: a low-income country halving poverty in about a decade through sustained growth and development programs.

1978-2020

China's poverty elimination (1978-2020)

Market reforms launched in 1978 transformed China's economy over four decades. An estimated 800 million people rose out of poverty, the largest reduction in recorded history.

Then

Hundreds of millions moved from subsistence farming to urban manufacturing and services work.

Now

China declared the eradication of extreme poverty in 2020, a stated national goal.

Why this matters now

The scale dwarfs Nepal's, but the mechanism is the same: sustained growth plus state-led programs. Nepal's case is notable for how fast it is happening relative to its starting point.