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Economy Overview

The economy, one of the world's smallest and least developed, 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. 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 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.

Agriculture Products

rice, corn, root crops, citrus, foodgrains; dairy products, eggs

Industries

cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism

Industrial Production Growth Rate

9.3% (1996 est.)

Labor Force

Array

Electricity production

2 billion kWh (2005)

Electricity Consumption

380 million kWh (2005)

Electricity Exports

1.5 billion kWh (2005)

Electricity Imports

20 million kWh (2005)

Unemployment Rate

2.5% (2004)

Population Below Poverty Line

31.7% (2003)

Household Income or Consumption by Percentage Share

Lowest 10%: NA%

Highest 10%: NA%

Budget

Revenues: $272 million

Expenditures: $350 million

Note: the government of India finances nearly three-fifths of Bhutan's budget expenditures (2005)

Public Debt

81.4% of GDP (2004)

Commercial Bank Prime Lending Rate

Stock of Narrow Money

Stock of Broad Money

Stock of Domestic Credit

Market Value of Publicly Traded Shares

$NA

Reserves of Foreign Exchange and Gold

Debt External

$593 million (2004)

Stock of Direct Foreign Investment at Home

Stock of Direct Foreign Investment Abroad

Exchange Rates

Exchange rates: ngultrum per US dollar - 45.279 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003), 48.61 (2002)

Note: the ngultrum is pegged to the Indian rupee

Year	2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

GDP Official Exchange Rate

$840.5 million 2005 est.

Fiscal Year

1 July - 30 June

GDP Purchasing Power Parity

$3.503 billion (2006 est.)

GDP Real Growth Rate

8.8% (2005 est.)

GDP Per Capital

$1,400 (2003 est.)

Gross National Saving

GDP Composition by end Use

GDP Composition by Sector of Origin

Agriculture
24.7%
Industry
37.2%
Services
38.1% (2005)

Inflation Rate Consumer Prices

5.5% (2005 est.)

Current Account Balance

Exports

$186 million f.o.b. (2005)

Exports Partners

India
54.5%
Hong
Kong
Bangladesh
6.9%

Exports Commodities

Electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices

Imports

$410 million c.i.f. (2005)

Imports Partners

India
76%
Japan
5.5%
Germany
3.2%

Imports Commodities

Fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice

Bhutan