Economy Overview
Bhutan's small economy is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half 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. Bhutan signed a pact in December 2014 to expand duty-free trade with Bangladesh.; 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 is cautious in its expansion of the tourist sector, restricing visits to 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 - could spur sustainable growth in the coming years if Bhutan resolves chronic delays in construction. Bhutan’s hydropower exports comprise 40% of total exports and 25% of the government’s total revenue. Bhutan currently taps only 6.5% of its 24,000-megawatt hydropower potential and is behind schedule in building 12 new hydropower dams with a combined capacity of 10,000 megawatts by 2020 in accordance with a deal signed in 2008 with India. The high volume of imported materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan also signed a memorandum of understanding with Bangladesh and India in July 2017 to jointly construct a new hydropower plant for exporting electricity to Bangladesh.;
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
6.3% (2017 est.); country comparison to the world: 36;
Labor Force
397,900 (2017 est.); note: major shortage of skilled labor; country comparison to the world: 160;
Unemployment Rate
3.2% (2017 est.); 3.2% (2016 est.); country comparison to the world: 39;
Population Below Poverty Line
12% (2012 est.);
Household Income or Consumption by Percentage Share
Lowest 10%: 30.6% (2012)
Highest 10%: 30.6% (2012)
Distribution of Family Income Gini Index
38.8 (2012); 38.1 (2007); country comparison to the world: 75;
Budget
Revenues: 655.3 million (2017 est.)
Expenditures: 737.4 million (2017 est.)
Note: the Government of India finances nearly one-quarter of Bhutan's budget expenditures
Public Debt
106.3% of GDP (2017 est.); 114.2% of GDP (2016 est.); country comparison to the world: 12;
Central Bank Discount Rate
6% (2017 est.); note: this is the policy rate of Bhutan's central bank; country comparison to the world: 68;
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$993.5 million (31 December 2017 est.); $769 million (31 December 2016 est.); country comparison to the world: 158;
Stock of Broad Money
$993.5 million (31 December 2017 est.); $769 million (31 December 2016 est.); country comparison to the world: 163;
Stock of Domestic Credit
$1.535 billion (31 December 2017 est.); $1.17 billion (31 December 2016 est.); country comparison to the world: 161;
Market Value of Publicly Traded Shares
$401.4 million (31 December 2017 est.); $340.5 million (31 December 2016 est.); $359.3 million (31 December 2015 est.); country comparison to the world: 114;
Reserves of Foreign Exchange and Gold
$1.206 billion (31 December 2017 est.); $1.127 billion (31 December 2016 est.); country comparison to the world: 129;
Debt External
$2.671 billion (31 December 2017 est.); $2.355 billion (31 December 2016 est.); country comparison to the world: 147;
Stock of Direct Foreign Investment at Home
$160.4 million (31 December 2017 est.); $168.4 million (31 December 2016 est.); country comparison to the world: 135;
Stock of Direct Foreign Investment Abroad
Exchange Rates
ngultrum (BTN) per US dollar -; 64.97 (2017 est.); 67.2 (2016 est.); 67.2 (2015 est.); 64.15 (2014 est.); 61.03 (2013 est.);
