Bhutan Economy Profile 2009

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.

GDP (purchasing power parity)

$3.524 billion (2008 est.)
$2.903 billion (2007 est.)
$2.731 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.368 billion (2008 est.)

GDP - real growth rate

21.4% (2008 est.)
6.3% (2007 est.)
6.5% (2006 est.)

GDP - per capita (PPP)

$5,200 (2008 est.)
$4,300 (2007 est.)
$4,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 22.3%
industry: 37.9%
services: 39.8% (2006)

Population below poverty line

31.7% (2003)

Labor force

NA
note: major shortage of skilled labor

Labor force - by occupation

agriculture: 63%
industry: 6%
services: 31% (2004 est.)

Unemployment rate

2.5% (2004)

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)
81.4% of GDP (2004)

Inflation rate (consumer prices)

4.9% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
14% (31 December 2007)

Stock of money

$NA (31 December 2008)
$381.1 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$220.3 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$169.9 million (31 December 2007)

Industries

cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism

Industrial production growth rate

NA

Electricity - production

4.475 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 0.1%
hydro: 99.9%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

528.8 million kWh (2007 est.)

Electricity - exports

3.644 billion kWh (2007 est.)

Electricity - imports

11 million kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

1,250 bbl/day (2006 est.)

Oil - imports

1,152 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$116 million (2007 est.)

Agriculture - products

rice, corn, root crops, citrus, foodgrains; dairy products, eggs

Exports

$350 million (2006)

Exports - commodities

electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices

Exports - partners

India 94.8%, Italy 1.8%, Japan 0.8% (2008)

Imports

$320 million (2006)

Imports - commodities

fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice

Imports - partners

India 63.9%, Japan 12.1%, China 5.1% (2008)

Debt - external

$713.3 million (2006)

Market value of publicly traded shares

$NA

Economic aid - recipient

$941.2 million; note - substantial aid from India (2006)

Currency (code)

ngultrum (BTN); Indian rupee (INR)

Currency (code)

BTN; INR

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

Fiscal year

1 July - 30 June