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. Complicated 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. 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
299,900country comparison to the world: 164 note: major shortage of skilled labor (2008)
Electricity production
1.48 billion kWh (2009 est.)country comparison to the world: 141
Electricity Consumption
184 million kWh (2009 est.)country comparison to the world: 183
Electricity Exports
1.296 billion kWh (2009 est.)
Electricity Imports
5.693 billion kWh (2008 est.)
Unemployment Rate
4% (2009)country comparison to the world: 36 2.5% (2004)
Population Below Poverty Line
23.2% (2008)
Household Income or Consumption by Percentage Share
Lowest 10%: 2.3%
Highest 10%: 37.6% (2003)
Budget
Revenues: $576.5 million
Expenditures: $666 million
Note: the government of India finances nearly three-fifths of Bhutan's budget expenditures (2010 est.)
Public Debt
57.8% of GDP (2009)country comparison to the world: 37 81.4% of GDP (2004)
Central Bank Discount Rate
NA%
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$418.9 million (31 December 2010 est.)country comparison to the world: 162 $383 million (31 December 2009 est.)
Stock of Broad Money
$637.1 million (31 December 2009 est.)
Stock of Domestic Credit
$218.7 million (31 December 2010 est.)country comparison to the world: 178 $186.4 million (31 December 2009 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$1.002 billion (31 December 2010 est.)country comparison to the world: 135 $890.9 million (31 December 2009 est.)
Debt External
$836 million (2009)country comparison to the world: 155 $713.3 million (2006)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
ngultrum (BTN) per US dollar -46.6 (2009)41.487 (2007)45.279 (2006)44.101 (2005)45.317 (2004)
