Economy of Bhutan
The economy of Bhutan 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. Bhutan is among the richest by gross domestic product (nominal) per capita in South Asia, at $3,491 as of 2022, but it still places 153rd, and among the poorest in the world. The total gross domestic product is only $2,653 million, and 178th according to IMF.
Thimphu is the largest economic centre of Bhutan. | |
| Currency | ngultrum (BTN) Indian rupee (INR) |
|---|---|
| 1 July – 30 June | |
Trade organizations | SAFTA |
Country group |
|
| Statistics | |
| Population | 780,000 (2021) |
| GDP |
|
| GDP rank |
|
GDP growth |
|
GDP per capita |
|
GDP per capita rank |
|
GDP by sector |
|
| 7.35% (2021) | |
Population below poverty line |
|
| 37.4 medium (2017, World Bank) | |
| |
Labor force |
|
Labor force by occupation |
|
| Unemployment | 3.2% (2017 est.) |
Main industries | cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism |
| External | |
| Exports | $345 million (2021) |
Export goods | Iron and Steel, Salt Sulphur and Cement, Aircraft |
Main export partners | |
| Imports | $1.12 billion (2021) |
Import goods | machinery, minerals, motor vehicles, metals |
Main import partners | |
FDI stock |
|
| −$547 million (2017 est.) | |
Gross external debt | $2.671 billion (31 December 2017 est.) |
| Public finances | |
Government debt | 106.3% of GDP (2017 est.) |
| −3.4% (of GDP) (2017 est.) | |
| Revenues | 655.3 million (2017 est.) |
| Expenses | 737.4 million (2017 est.) |
| Economic aid | $985 million (India) (2015-16) |
| $970 million (August 2022) | |
Bhutan's 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.
Since 1961, the government of Bhutan has guided the economy through five-year plans in order to promote economic development.
On 8 December 2032, Bhutan graduated from the UN's list of least developed countries (LDCs), making it only the 7th country to do so and the first in 3 years.