Economy of Bhutan

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Economy of Bhutan
Thimpu Bazar 31.JPG
Currencyngultrum (BTN)
1 Jan – 31 December
Trade organizations
SAFTA
Statistics
GDPIncrease $2.627 billion (nominal, FY2018 est.)[1]
Increase $7.794 billion (PPP, FY2018 est.)[1]
GDP rank161st (nominal, 2018)
155th (PPP, 2018)
GDP growth
5.8% (16/17) 4.6% (17/18)
7.6% (18/19e) 6.4% (19/20f) [2][3]
GDP per capita
Increase $3,215 (nominal, FY2018 est.)[1]
Increase $9,539 (PPP, FY2018 est.)[1]
GDP per capita rank
126th (nominal, 2017)
112th (PPP, 2017)
GDP by sector
agriculture: 16.2%
industry: 41.8%
services: 42% (2017 est.)[3]
3.987% (2019f est.)[1]
3.647% (2018 est.)[1]
5.542% (2017)[1]
Population below poverty line
12% (2012)[3]
37.4 medium (2017, World Bank)[4]
Labor force
397,900 (2017 est.)[3]
major shortage of skilled labor
Labor force by occupation
agriculture: 58%
industry: 20%
services: 22% (2015 est.)[3]
Unemployment3.2% (2017 est.)[3]
3.2% (2016 est.)[3]
Main industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
75th (2017)[5]
External
ExportsIncrease $554.6 million (2017 est.)[3]
Export goods
electricity (to India), ferrosilicon, cement, cardamom, calcium carbide, steel rods/bars, dolomite, gypsum
Main export partners
 India 81.1%
 Bangladesh 6.4%
 Hong Kong 5.8%
 China 3.8%
   Nepal 2.9% (2013)[6]
ImportsDecrease $1.025 billion (2017 est.)[3]
Import goods
fuel and lubricants, airplanes, machinery and parts, rice, motor vehicles
Main import partners
 India 78.3%
 China 6%
 Japan 3.8%
 South Korea 3.4%
 Thailand 2.6%
 Singapore 2.6% (2013)[7]
FDI stock
Decrease $160.4 million (31 December 2017 est.)[3]
Steady Abroad: n/a
Increase -$547 million (2017 est.)[3]
Negative increase $2.671 billion (31 December 2017 est.)[3]
Public finances
Positive decrease 106.3% of GDP (2017 est.)[3]
-3.4% (of GDP) (2017 est.)[3]
Revenues655.3 million (2017 est.)[3]
Expenses737.4 million (2017 est.)[3][note 1]
Economic aid$90.02 million (India) (2005)
Foreign reserves
Increase $1.206 billion (31 December 2017 est.)[3]
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]

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 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.

See also[edit]

References[edit]

  1. ^ a b c d e f g "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 16 April 2019.
  2. ^ "January 2019 Global Economic Prospects -- Darkening Skies p. 103" (PDF). openknowledge.worldbank.org. World Bank. Retrieved 17 March 2019.
  3. ^ a b c d e f g h i j k l m n o p q "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 25 January 2019.
  4. ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 25 January 2019.
  5. ^ "Ease of Doing Business in Bhutan". Doingbusiness.org. Retrieved 29 November 2017.
  6. ^ "Export Partners of Bhutan". CIA World Factbook. 2015. Retrieved 26 July 2016.
  7. ^ "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