Economy of Bhutan

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Economy of Bhutan
Thimpu Bazar 31.JPG
Thimphu is the largest economic centre of Bhutan
Currencyngultrum (BTN)
1 Jan – 31 December
Trade organizations
SAFTA
Country group
Statistics
PopulationIncrease 754,394 (2018)[3]
GDP
  • Increase $2.842 billion (nominal, 2019 est.)[4]
  • Increase $8.199 billion (PPP, 2019 est.)[4]
GDP rank
GDP growth
  • 6.3% (16/17) 3.8% (17/18)
  • 3.9% (18/19e) 5.6% (19/20f)[5]
GDP per capita
  • Increase $3,423 (nominal, 2019 est.)[4]
  • Increase $9,876 (PPP, 2019 est.)[4]
GDP per capita rank
GDP by sector
4.2% (2020 est.)[4]
Population below poverty line
  • 8.2% (2017)[7]
  • 12% on less than $3.20/day (2017)[8]
37.4 medium (2017, World Bank)[9]
Labor force
  • Increase 381,742 (2019)[12]
  • major shortage of skilled labor[6]
  • Increase 61.6% employment rate (2015)[13]
Labor force by occupation
UnemploymentSteady 3.2% (2017 est.)[6]
Main industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Decrease 89th (easy, 2020)[14]
External
ExportsIncrease $554.6 million (2017 est.)[6]
Export goods
electricity (to India), ferrosilicon, cement, cardamom, calcium carbide, steel rods/bars, dolomite, gypsum
Main export partners
ImportsDecrease $1.025 billion (2017 est.)[6]
Import goods
fuel and lubricants, airplanes, machinery and parts, rice, motor vehicles
Main import partners
FDI stock
  • Decrease $160.4 million (31 December 2017 est.)[6]
  • Steady Abroad: n/a
Increase −$547 million (2017 est.)[6]
Negative increase $2.671 billion (31 December 2017 est.)[6]
Public finances
Positive decrease 106.3% of GDP (2017 est.)[6]
−3.4% (of GDP) (2017 est.)[6]
Revenues655.3 million (2017 est.)[6]
Expenses737.4 million (2017 est.)[6][note 1]
Economic aid$90.02 million (India) (2005)
Foreign reserves
Increase $1.206 billion (31 December 2017 est.)[6]
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[edit]

Further information: Energy in Bhutan

This is a chart of trend of gross domestic product of Bhutan at market prices [1] by the International Monetary Fund:

Year GDP (millions of BTN) GDP (millions of USD)
1985 2,166 175
1990 4,877 279
1995 9,531 294
2000 20,060 460
2005 36,915 828
2008 45,000 1280

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.

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

See also[edit]

References[edit]

  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Population, total - Bhutan". data.worldbank.org. World Bank. Retrieved 15 October 2019.
  4. ^ a b c d e "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 20 October 2019.
  5. ^ "Global Economic Prospects, January 2020 : Slow Growth, Policy Challenges" (PDF). openknowledge.worldbank.org. World Bank. p. 130. Retrieved 9 January 2020.
  6. ^ a b c d e f g h i j k l m n "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 25 January 2019.
  7. ^ "Poverty headcount ratio at national poverty lines (% of population) - Bhutan". data.worldbank.org. World Bank. Retrieved 21 March 2020.
  8. ^ "Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population) - Bhutan". data.worldbank.org. World Bank. Retrieved 5 March 2020.
  9. ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 25 January 2019.
  10. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  11. ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  12. ^ "Labor force, total - Bhutan". data.worldbank.org. World Bank. Retrieved 5 March 2020.
  13. ^ "Employment to population ratio, 15+, total (%) (national estimate) - Bhutan". data.worldbank.org. World Bank. Retrieved 5 March 2020.
  14. ^ "Ease of Doing Business in Bhutan". Doingbusiness.org. Retrieved 29 November 2017.
  15. ^ "Export Partners of Bhutan". CIA World Factbook. 2015. Retrieved 26 July 2016.
  16. ^ "Import Partners of Bhutan". CIA World Factbook. 2015. Retrieved 26 July 2016.

External links[edit]

Notes[edit]

  1. ^ the Government of India finances nearly one-quarter of Bhutan's budget expenditures
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