Kathmandu is the economic engine of Nepal, contributing roughly a third of the national GDP. Its economy is largely driven by the tertiary sector, with trade, commerce, and tourism playing outsized roles. As the country's primary point of entry for international visitors, the city is a major hub for travel agencies, hotels, restaurants, and expedition outfitters.
The city serves as the corporate and financial center of the nation, housing the headquarters of the central bank (Nepal Rastra Bank), all major commercial banks, the Nepal Stock Exchange, and the primary offices of national and multinational corporations. Cost of living in Kathmandu is the highest in Nepal, driven by steep real estate prices and the cost of imported goods. Additionally, the local economy benefits substantially from internal remittance, as funds earned by Nepalis working abroad frequently flow through the capital before reaching rural districts.