Economy of Bhutan

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Economy of Bhutan
Rank 169th
Currency ngultrum (BTN); Indian rupee (INR)
1 July - 30 June
Trade organizations
SAFTA
Statistics
GDP $5.036 billion (2012 est.)
GDP growth
9.7% (2012 est.)
GDP per capita
$6,800 (2012 est.)
GDP by sector
agriculture: 22.3%, industry: 37.9%, services: 39.8% (2006)
4.9% (2007 est.)
Population below poverty line
31.7% (2003)
no data
Labor force
no data (major shortage of skilled labor)
Labor force by occupation
agriculture: 63%, industry: 6%, services: 31% (2004 est.)
Unemployment 2.5% (2004)
Main industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
142nd[1]
External
Exports $350 million f.o.b. (2006)
Export goods
electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Main export partners
India 58.6%, Hong Kong 30.1%, Bangladesh 7.3% (2007)
Imports $320 million c.i.f. (2006)
Import goods
fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Main import partners
India 74.5%, Japan 7.4%, Sweden 3.2% (2007)
Public finances
$713.3 million (2006)
Revenues $272 million (2005)
Expenses $350 million (India finances 3/5 of Bhutan's expenditures) (2005)
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 labor. Model education, social, and environment programs are underway with support from multilateral development organizations. 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, labor, 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 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. Model education, social, and environment programs in Bhutan are underway with support from multilateral development organizations. 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, labor, 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[edit]

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

E.T.C

References[edit]

  1. ^ "Doing Business in Bhutan 2012". World Bank. Retrieved 2011-11-21. 

External links[edit]