Bhutan Economy
Economy - overviewThe economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for more than 90% 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. The industrial sector is technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Bhutan's hydropower potential and its attraction for tourists are key resources. 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 the visits of upscale, environmentally conscientious visitors. Detailed controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.
GDP
purchasing power parity - $2.7 billion (2002 est.)
GDP - real growth rate
7.7% (2002 est.)
GDP - per capita
purchasing power parity - $1,300 (2002 est.)
GDP - composition by sector
agriculture: 45%
industry: 10%
services: 45% (2002 est.)
Population below poverty line
NA
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
Inflation rate
3% (2002 est.)
Labor force
NA
note: massive lack of skilled labor (1997 est.)
Labor force - by occupation
agriculture 93%, industry and commerce 2%, services 5%
Unemployment rate
NA
Budget
revenues: $146 million
expenditures: $152 million, including capital expenditures of NA
note: the government of India finances nearly three-fifths of Bhutan's budget expenditures (FY95/96 est.)
Agriculture - products
rice, corn, root crops, citrus, foodgrains; dairy products, eggs
Industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide
Industrial production growth rate
9.3% (1996 est.)
Electricity - production
1.896 billion kWh (2001)
Electricity - consumption
379.5 million kWh (2001)
Electricity - exports
1.4 billion kWh (2001)
Electricity - imports
16 million kWh (2001)
Oil - production
0 bbl/day (2001 est.)
Oil - consumption
1,020 bbl/day (2001 est.)
Oil - exports
NA (2001)
Oil - imports
NA (2001)
Exports
$154 million f.o.b. (2000 est.)
Exports - commodities
electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Exports - partners
Bangladesh 60.5%, US 11.7%, Malaysia 5.7% (2003)
Imports
$196 million c.i.f. (2000 est.)
Imports - commodities
fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice
Imports - partners
Japan 36.6%, Austria 14.2%, Sweden 8.3%, China 7.5%, Thailand 6%, Bangladesh 6%, Germany 5.5%, Italy 4% (2003)
Debt - external
$245 million (2000)
Currency
ngultrum (BTN); Indian rupee (INR)
Currency code
BTN; INR
Exchange rates
ngultrum per US dollar - 46.5806 (2003), 48.6103 (2002), 47.1864 (2001), 44.9416 (2000), 43.0554 (1999)
