Population growth continues to hinder Nepals economic progress.

Wedged between the worlds two population billionaires China and India Nepal is struggling with its own population pressures. The countrys 23 million people most of whom make their living from farming have nearly run out of land to cultivate while their numbers continue to grow; poverty the highest outside of Africa persists; and internal conflict is draining already scarce resources. Nepals 10th population census conducted in June 2001 produced a population count of 23214681. That number marked an increase of 5 million since the previous census in 1991 and an average annual growth rate of 2.3 percent. According to the census 86 percent of this growing population lives in rural areas and 82 percent of the economically active population works in agriculture fishing or forestry. Because one-third of the country consists of mountains or hills little additional land is available to tend. The share of land being cultivated rose from 17 percent in 1974 to 30 percent in 1998 and the remaining areas that could be added consist mostly of slopes and marginal lands that are environmentally sensitive and less productive. (excerpt)