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. 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. 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. New hydropower projects will be the driving force behind Bhutan's ability to create employment and sustain growth in the coming years.
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
NA
Labor Force
NA note: major shortage of skilled labor
Electricity production
4.475 billion kWh (2007 est.)country comparison to the world: 116
Electricity Consumption
528.8 million kWh (2007 est.)country comparison to the world: 160
Electricity Exports
3.644 billion kWh (2007 est.)
Electricity Imports
11 million kWh (2007 est.)
Unemployment Rate
2.5% (2004)country comparison to the world: 28
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)country comparison to the world: 11 81.4% of GDP (2004)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$NA (31 December 2008)$169.9 million (31 December 2007)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
Debt External
$713.3 million (2006)country comparison to the world: 158
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
ngultrum (BTN) per US dollar - 41.487 (2007), 45.279 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003) note: the ngultrum is pegged to the Indian rupee
