Economy Overview
The economy, one of the world's smallest and least developed, is based on agriculture and forestry, providing 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. 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. 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. Detailed controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment. Major hydroelectric projects will lead expansion of GDP in 2002 by an estimated 6%.
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
1.876 billion kWh (2000)
Electricity production by source
Fossil fuel: 0%
Hydro: 100%
Other: 0% (2000)
Nuclear: 0%
Electricity Consumption
380.68 million kWh (2000)
Electricity Exports
1.385 billion kWh (2000)
Electricity Imports
21 million kWh (2000)
Currency
ngultrum (BTN); Indian rupee (INR)
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $146 million
Expenditures: $152 million, including capital expenditures of $NA (FY95/96 est.)
Note: the government of India finances nearly three-fifths of Bhutan's budget expenditures
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$245 million (1998)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
ngultrum per US dollar - 48.336 (January 2002), 47.186 (2001), 44.942 (2000), 43.055 (1999), 41.259 (1998), 36.313 (1997); note - the Bhutanese ngultrum is at par with the Indian rupee which is also legal tender
