Economy Overview
Bhutan's economy, small and less developed, is based largely on agriculture and forestry, which provide the main livelihood for more than half of the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Multilateral development organizations administer most educational, social, and environment programs, and take 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. Bhutan’s largest export - hydropower to India - is creating employment and will probably sustain growth in the coming years. Only 5% of Bhutan’s 30,000 megawatt hydropower potential is currently tapped. The large amount of equipment needed to import materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan’s GDP has rebounded strongly since the global recession began in 2008. Bhutan hopes to play a larger role in regional economic integration as a member of the South Asia Association for Regional Cooperation and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.
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
7% (2013 est.) country comparison to the world: 35
Labor Force
336,400 country comparison to the world: 162 note: major shortage of skilled labor (2012)
Labor Force by Occupation
agriculture: 62%
industry: 19%
services: 19% (2012 est.)
Unemployment Rate
2.1% (2013) country comparison to the world: 17 4% (2009)
Population Below Poverty Line
12% (2012)
Household Income or Consumption by Percentage Share
lowest 10%: 2.3%
highest 10%: 37.6% (2003)
Distribution of Family Income Gini Index
38.7 country comparison to the world: 70 38.1
Budget
revenues: $588.2 million
expenditures: $639.5 million
note: the government of India finances nearly one-quarter of Bhutan's budget expenditures (2013 est.)
Public Debt
38.9% of GDP (2013 est.) country comparison to the world: 93 44.1% of GDP (2012 est.)
Central Bank Discount Rate
NA%
Commercial Bank Prime Lending Rate
14% (31 December 2013 est.) country comparison to the world: 50 14% (31 December 2012 est.)
Stock of Narrow Money
$224.9 million (31 December 2013 est.) country comparison to the world: 174 $191.9 million (31 December 2012 est.)
Stock of Broad Money
$1.099 billion (31 December 2013 est.) country comparison to the world: 167 $1.062 billion (31 December 2012 est.)
Stock of Domestic Credit
$915 million (31 December 2013 est.) country comparison to the world: 155 $874.4 million (31 December 2012 est.)
Market Value of Publicly Traded Shares
$NA country comparison to the world: 104 $283.4 million
Reserves of Foreign Exchange and Gold
Debt External
$1.275 billion (2011) country comparison to the world: 155 $836 million (2009)
Stock of Direct Foreign Investment at Home
$63.5 million country comparison to the world: 108
Stock of Direct Foreign Investment Abroad
Exchange Rates
ngultrum (BTN) per US dollar -56.61 (2013 est.) 53.44 (2012 est.) 45.73 (2010 est.) 46.68 (2009 est.) 43.51 (2008 est.)
