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The '''economy of [[Bhutan]]''' 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. '''Bhutan''' is among the richest by [[List of countries by GDP (nominal) per capita|gross domestic product (nominal) per capita]] in South Asia, at 3,491$ as of 2022, but it still places 153rd, and among the poorest in the world.
The '''economy of [[Bhutan]]''' 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. '''Bhutan''' is among the richest by [[List of countries by GDP (nominal) per capita|gross domestic product (nominal) per capita]] in South Asia, at 3,491$ as of 2022, but it still places 153rd, and among the poorest in the world. The total [[List of countries by GDP (nominal)|gross domestic product]] is only 2,653$ million.


[[Bhutan]]'s economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. Most production in the industrial sector is of the cottage industry type. Most development projects, such as road construction, rely on Indian [[migrant labour]]. Model education, social, and environment programs are underway with support from multilateral development organisations.
[[Bhutan]]'s economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. Most production in the industrial sector is of the cottage industry type. Most development projects, such as road construction, rely on Indian [[migrant labour]]. Model education, social, and environment programs are underway with support from multilateral development organisations.

Revision as of 11:43, 1 June 2022

Economy of Bhutan
Thimphu is the largest economic centre of Bhutan
Currencyngultrum (BTN)
1 July – 30 June
Trade organizations
SAFTA
Country group
Statistics
PopulationIncrease 754,394 (2018)[3]
GDP
  • Increase $2.842 billion(nominal, 2019 est.)[4]
  • Increase $8.199 billion(PPP, 2019 est.)[4]
GDP rank
GDP growth
  • 3.8% (17/18) 3.9% (18/19e)
  • 1.5% (19/20f) 1.8% (20/21f)[5]
GDP per capita
  • Decrease $3,280 (nominal, 2020)[4]
  • Increase $9,876 (PPP, 2019 est.)[4]
GDP per capita rank
GDP by sector
4.2% (2020 est.)[4]
Population below poverty line
  • 8.2% (2017)[7]
  • Positive decrease 9.8% on less than $3.20/day (2020f)[8]
37.4 medium (2017, World Bank)[9]
Labor force
  • Increase 381,742 (2019)[12]
  • major shortage of skilled labour[6]
  • Increase 61.6% employment rate (2015)[13]
Labor force by occupation
UnemploymentSteady 3.2% (2017 est.)[6]
Main industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
External
ExportsIncrease $554.6 million (2017 est.)[6]
Export goods
electricity (to India), ferrosilicon, cement, cardamom, calcium carbide, steel rods/bars, dolomite, gypsum
Main export partners
ImportsDecrease $1.025 billion (2017 est.)[6]
Import goods
fuel and lubricants, airplanes, machinery and parts, rice, motor vehicles
Main import partners
FDI stock
  • Decrease $160.4 million (31 December 2017 est.)[6]
  • Steady Abroad: n/a
Increase −$547 million (2017 est.)[6]
Negative increase $2.671 billion (31 December 2017 est.)[6]
Public finances
Positive decrease 106.3% of GDP (2017 est.)[6]
−3.4% (of GDP) (2017 est.)[6]
Revenues655.3 million (2017 est.)[6]
Expenses737.4 million (2017 est.)[6][note 1]
Economic aid$985 million (India) (2015-16)
Increase $1.206 billion (31 December 2017 est.)[6]
All values, unless otherwise stated, are in US dollars.


The economy of Bhutan 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. Bhutan is among the richest by gross domestic product (nominal) per capita in South Asia, at 3,491$ as of 2022, but it still places 153rd, and among the poorest in the world. The total gross domestic product is only 2,653$ million.

Bhutan's economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. Most production in the industrial sector is of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labour. Model education, social, and environment programs are underway with support from multilateral development organisations.

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, labour, 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.

Since 1961, the government of Bhutan has guided the economy through five-year plans in order to promote economic development.[16]

Macro-economic trend

Further information: Energy in Bhutan

This is a chart of trend of gross domestic product of Bhutan at market prices [1] by the International Monetary Fund:

Year GDP (millions of BTN) GDP (millions of USD)
1985 2,166 175
1990 4,877 279
1995 9,531 294
2000 20,060 460
2005 36,915 828
2008 45,000 1280
2011 84,950 1695
2014 119,546 1784
2017 159,572 2294

Bhutan's hydropower potential and its attraction for tourists are key resources. The Bhutanese Government has made some progress in expanding the nation's productive base and improving social welfare.

In 2010, Bhutan became the first country in the world to ban smoking and the selling of tobacco. In order to stamp out cross-border smuggling during the pandemic, a new Tobacco Control Rules and Regulations (TCRR) 2021 allowed the import, sales and consumption of tobacco products.[17]

GNH versus GDP

In the 1970s the King placed Gross National Happiness over Gross Domestic Product.[18][19]

See also

References

Notes
  1. ^ the Government of India finances nearly one-quarter of Bhutan's budget expenditures
Public domain
  • Public Domain This article incorporates public domain material from The World Factbook. CIA.
  • Public Domain This article incorporates public domain material from U.S. Bilateral Relations Fact Sheets. United States Department of State.
Citations
  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Population, total - Bhutan". data.worldbank.org. World Bank. Retrieved 15 October 2019.
  4. ^ a b c d e "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 20 October 2019.
  5. ^ "Global Economic Prospects, June 2020". openknowledge.worldbank.org. World Bank. p. 98. Retrieved 24 June 2020.
  6. ^ a b c d e f g h i j k l m n "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 25 January 2019.
  7. ^ "Poverty headcount ratio at national poverty lines (% of population) - Bhutan". data.worldbank.org. World Bank. Retrieved 21 March 2020.
  8. ^ "South Asia Economic Focus, Spring 2020 : The Cursed Blessing of Public Banks". openknowledge.worldbank.org. World Bank. p. 92. Retrieved 14 April 2020.
  9. ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 25 January 2019.
  10. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  11. ^ "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 22 May 2020.
  12. ^ "Labour force, total - Bhutan". data.worldbank.org. World Bank. Retrieved 5 March 2020.
  13. ^ "Employment to population ratio, 15+, total (%) (national estimate) - Bhutan". data.worldbank.org. World Bank. Retrieved 5 March 2020.
  14. ^ "Export Partners of Bhutan". CIA World Factbook. 2015. Retrieved 26 July 2016.
  15. ^ "Import Partners of Bhutan". CIA World Factbook. 2015. Retrieved 26 July 2016.
  16. ^ "1961 – First Five-Year Plan launched". Bhutan 2008. Archived from the original on 25 August 2011. Retrieved 22 August 2011.
  17. ^ "Selling and buying of tobacco products are no longer illegal in Bhutan". DailyBhutan. Retrieved 6 December 2021.
  18. ^ Sharma, Lyonpo Loknath (25 October 2021). "What Bhutan got right about happiness - and what other countries can learn". World Economic Forum. Retrieved 27 February 2022.
  19. ^ "Bhutan's Gross National Happiness Index". Oxford Poverty & Human Development Initiative (OPHI). University of Oxford. Retrieved 27 February 2022.

Further reading

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