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What the mushrooming of paid laundry services reveals about Nepal’s rising middle class
Although seemingly innocuous, the proliferation of laundry services can be seen as an indicator of economic growth.Devashish Regmi
The EVs get all the attention on Nepali streets, but something humbler is multiplying alongside them—the laundry service. Flex boards advertising one are now hard to miss in Kathmandu and increasingly beyond it. Although a seemingly innocuous detail, the proliferation of laundry services can be read as an indicator of economic growth.
The macro indicators already point in a favourable direction. Over the past decade, Nepal has achieved positive GDP growth every year bar the pandemic-stricken 2020. Averaged across the same period, the economy expanded by roughly 4.3 percent annually and nearly doubled the per-capita income. But such aggregates are often treated with a degree of suspicion, particularly in developing countries where a large share of economic activity is informal, unpaid or never recorded—a description that fits Nepal perfectly. Therefore, devising inventive ways to take an economy’s pulse is not unheard of. Satellite imagery of nighttime lights, for example, has been used to estimate national output, while lipstick sales and even the so-called stripper index are tracked to predict recessions before official data catch up. Read in that tradition, growth seen through something as ordinary as laundry is not as strange as it first sounds.
Laundry is, admittedly, not the only candidate. The proliferation of restaurants serving foreign cuisine, the sudden appearance of pickleball courts, or the infectious matcha latte that we all pretend to like could each signal the same thing. But laundry is arguably the stronger proxy primarily because of its cultural history. Nepal remains an agrarian society with over 60 percent of households still dependent on agriculture, and in agrarian societies, gendered divisions of labour tend to be more pronounced. Laundry has long sat firmly on one side of that line as a chore that fell, almost without question, to the women of the house. Therefore, for generations, laundry appeared to be free only because its cost was absorbed by the gendered expectation of who would do it.
What a laundry service does, then, is let a household buy back that labour, and buying back one’s own time is precisely what people do when they grow richer. A matcha latte was always a luxury for a thin stratum of the demographic, but laundry is a necessity that someone always had to perform, so paying to be relieved of it is a choice that only becomes possible once there is money to spare.
This is where the actual growth reveals itself. Any spending beyond necessities is called discretionary spending, and a sustained rise in it can broadly be read as a rise in prosperity. So when people begin paying for things they could do themselves or do without, it usually signals incomes rising underneath, and the same pattern is visible across Nepal. People eat out more, travel more within the country and summon a ride-hailing app rather than wait for a bus. The laundry service belongs to this same basket. Each of these is a small surrender of a cheaper option in favour of a paid one, and taken together, they are the texture of a middle-class taking shape. The shift also circles back to women. Since a chore once shouldered almost entirely by them is now outsourced, we would expect, over time, to see more women freed to enter paid work themselves. Slowly, it does seem to be happening. Female labour-force participation has climbed from 20.7 percent in 1990 to 27.5 percent in 2025,. This percentile, albeit half the global average, is moving in the right direction.
Perhaps, it’s easy to assume laundry shops mostly serve tourists, but they are mushrooming in residential corners of Kathmandu, Nepalgunj and Biratnagar with no tourists in sight. One quieter mechanism to consider is that a rented room in these cities rarely has the space for a washing machine, and renters hesitate to buy one anyway, given the impermanence of living in a flat. So the mundane chore is drifting out of the home and into a shop, and what was once unpaid and invisible is quietly becoming a transaction.
One objection worth raising is about where the money comes from. Nepal’s boom is, to a large degree, a remittance boom, with wages sent home from foreign labour worth roughly a quarter of the economy. So a laundromat’s growing clientele may be funded less by a productive economy at home and more by drops of sweat fallen abroad, which would make this consumption-led rather than productivity-led growth. But disposable income is disposable income, no matter where it was earned. Therefore, to reiterate, a household choosing to pay to have its clothes washed is a new and conscious decision driven by expanding spending capacity.
However, all of this must still be viewed with caution, because the studies also expose how far the floor remains from the ceiling. By Nepal’s own measure, roughly one in five people still live below the poverty line, and another fifth sit close enough to slip back under it after a single unexpected expense. Growth is forecast to slow to barely 2 percent this year, while the rising youth emigration hinders it further. It is also evident from the experience of Latin America and Southeast Asia that countries can cultivate a comfortable middle class and still leave a fifth of their people in poverty, and Nepal is in no way immune to the same fate.
So the laundromat is not the sole index of anything. The claim that Nepal is moving, albeit slowly, in the right direction because of rising laundromats remains a hunch dressed as an argument, incomplete unless replete with empirical evidence. But it offers a small solace. More people, in more cities, can now afford to let the machine do the washing. A generation ago, this was a luxury almost nobody bought. That, becoming an ordinary expense, is not nothing. It may be quiet and unglamorous, but it is the shape of a country finally beginning to afford itself.




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