Economy Overview
Bhutan's economy, small and less developed, is based on agriculture and forestry, which provide the main livelihood for more than 40% 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 is dependent 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. The import of equipment and fuel to build hydropower plants is leading to large trade and current account deficits, though new hydropower projects and electricity exports to India are creating employment and will probably sustain growth in the coming years. GDP has rebounded strongly since the global recession began in 2008.
Agriculture Products
rice, corn, root crops, citrus, dairy products, eggs
Industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Industrial Production Growth Rate
12.4%country comparison to the world: 9
Labor Force
299,900country comparison to the world: 165 note: major shortage of skilled labor (2008)
Unemployment Rate
4% (2009)country comparison to the world: 32 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: $615.7 million
Expenditures: $651.2 million
Note: the government of India finances nearly one-quarter of Bhutan's budget expenditures (2012 est.)
Public Debt
44.1% of GDP (2012 est.)country comparison to the world: 78 46.8% of GDP (2011 est.)
Central Bank Discount Rate
NA%
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$191.9 million (31 December 2012 est.)country comparison to the world: 178 $623.4 million (31 December 2011 est.)
Stock of Broad Money
$1.018 billion (31 December 2011 est.)country comparison to the world: 169 $1.16 billion (31 December 2010 est.)
Stock of Domestic Credit
$874.4 million (31 December 2012 est.)country comparison to the world: 156 $747.5 million (31 December 2011 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
Debt External
$1.275 billion (2011)country comparison to the world: 153 $836 million (2009)
Stock of Direct Foreign Investment at Home
$63.5 millioncountry comparison to the world: 104
Stock of Direct Foreign Investment Abroad
Exchange Rates
ngultrum (BTN) per US dollar -53.44 (2012 est.) 46.67 (2011 est.) 45.73 (2010 est.) 46.68 (2009 est.) 43.51 (2008 est.)
