Economy of Bhutan

Economy of Bhutan

Currency	ngultrum (BTN)
Fiscal year	1 Jan – 31 December
Trade organizations	SAFTA
Statistics
GDP	$2.085 billion (2015)[1]
GDP rank	168th (nominal) / 148th (PPP)
GDP growth	7.3% (2015), 7.4% (2016), 5.8% (2017e), 5.4% (2018f) [2]
GDP per capita	$8,100 (2015) [3]U
GDP by sector	agriculture: 14.4%, industry: 41.6%, services: 44% (2014)
Inflation (CPI)	9.6% (2014 est.)
Population below poverty line	12% (2012)
Gini coefficient	38.7 (2012)
Labor force	345,800 (2013)
Labor force by occupation	agriculture: 56%, industry: 22%, services: 22% (2013)
Unemployment	2.9% (2013)
Main industries	cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Ease-of-doing-business rank	75th (2017)[4]
External
Exports	$650.3 million (2014)
Export goods	electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Main export partners	India 81.1%  Bangladesh 6.4%  Hong Kong 5.8%  China 3.8%    Nepal 2.9% (2013)[5]
Imports	$980.6 million (2014)
Import goods	fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Main import partners	India 78.3%  China 6%  Japan 3.8%  South Korea 3.4%  Thailand 2.6%  Singapore 2.6% (2013)[6]
Public finances
Public debt	$713.3 million (2006)
Revenues	$407.1 million (2014)
Expenses	$614 million (the government of India finances nearly one-quarter of Bhutan's budget expenditures) (2014)
Economic aid	$90.02 million (India) (2005)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Bhutan, one of the world's smallest and least developed countries, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive.

The economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. Most production in the industrial sector is of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labour. Model education, social, and environment programs are underway with support from multilateral development organisations.

Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in areas such as industrial licensing, trade, labour, and finance continue to hamper foreign investment. Hydropower exports to India have boosted Bhutan's overall growth, even though GDP fell in 2008 as a result of a slowdown in India, its predominant export market.

Macro-economic trend

This is a chart of trend of gross domestic product of Bhutan at market prices by the International Monetary Fund:

Bhutan's hydropower potential and its attraction for tourists are key resources. The Bhutanese Government has made some progress in expanding the nation's productive base and improving social welfare. Model education, social, and environment programs in Bhutan are underway with support from multilateral development organisations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in such areas as industrial licensing, trade, labour, and finance continue to hamper foreign investment.

In 2004, Bhutan became the first country in the world to ban smoking and the selling of tobacco.

Other statistics

A proportional representation of Bhutan's exports.

Industrial production growth rate: 9.3% (1996 est.)

Electricity:

• production: 2 TWh (2005)
• consumption: 380 GWh (2005)
• exports: 1.5 TWh (2005) (exports electricity to India)
• imports: 20 GWh (2005)

Electricity – production by source:

• fossil fuel: 0.39%
• hydro: 99.61%
• nuclear: 0%
• other: 0% (1998)

Oil:

• production: 0 barrels per day (0 m³/d) (2005)
• consumption: 1,200 barrels per day (190 m³/d) (2005 est.)
• exports: 0 barrels per day (0 m³/d) (2004)
• imports: 1,138 barrels per day (180.9 m³/d) (2004)

Agriculture – products: rice, corn, root crops, citrus, foodgrains, dairy products, eggs

Currency: 1 ngultrum (BTN) = 100 chetrum; Indian rupee (INR)

Historic exchange rates:

	2006	2005	2004	2003	2002	2001	1999
Ngultrum per US$1	45,279	44,101	45,317	46,583	48.61	47,186	43,055

See also

• Agriculture in Bhutan
• Banking in Bhutan
• Mining in Bhutan
• Fishing in Bhutan
• Forestry in Bhutan
• Bhutanese ngultrum, currency

References

•  This article incorporates public domain material from the CIA World Factbook website https://www.cia.gov/library/publications/the-world-factbook/index.html.
•  This article incorporates public domain material from the United States Department of State website http://www.state.gov/r/pa/ei/bgn/index.htm (U.S. Bilateral Relations Fact Sheets).

External links

• Global Economic Prospects: Growth Prospects for South Asia The World Bank, 13 December 2006