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Introduction - Bhutan:
Location - Bhutan:
People - Bhutan:
Government - Bhutan:
Economy - Bhutan:

Economy overview

The economy, one of the worlds 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 Indias through strong trade and monetary links and dependence on Indias 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. Bhutans hydropower potential and its attraction for tourists are key resources. Model education, social, and environment programs are underway with support from multilateral development organizations. Each economic program takes into account the governments desire to protect the countrys 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.

Gdp purchasing power parity

$3.503 billion (2006 est.)

Gdp official exchange rate

$840.5 million (2005 est.)

Gdp real growth rate

8.8% (2005 est.)

Gdp per capita ppp

$1,400 (2003 est.)

Gdp composition by sector

agriculture: 24.7%
industry: 37.2%
services: 38.1% (2005)

Labor force

note: major shortage of skilled labor

Labor force by occupation

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

Unemployment rate

2.5% (2004)

Population below poverty line

31.7% (2003)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate consumer prices

5.5% (2005 est.)


revenues: $272 million
expenditures: $350 million; including capital expenditures of $NA
note: the government of India finances nearly three-fifths of Bhutans budget expenditures (2005)

Public debt

81.4% of GDP (2004)

Agriculture products

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


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

Industrial production growth rate

9.3% (1996 est.)

Electricity production

2.05 billion kWh (2004)

Electricity consumption

526.5 million kWh (2004)

Electricity exports

1.4 billion kWh (2004)

Electricity imports

20 million kWh (2004)

Oil production

0 bbl/day (2004)

Oil consumption

1,160 bbl/day (2004 est.)

Oil exports

NA bbl/day

Oil imports

NA bbl/day

Oil proved reserves

0 bbl

Natural gas production

0 cu m (2004 est.)

Natural gas consumption

0 cu m (2004 est.)

Natural gas proved reserves

0 cu m (1 January 2005 est.)


$186 million f.o.b. (2005)

Exports commodities

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

Exports partners

India 69.2%, Japan 9.1%, Germany 3.7% (2006)


$410 million c.i.f. (2005)

Imports commodities

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

Imports partners

India 75.3%, Hong Kong 16.1%, Mexico 4.9% (2006)

Debt external

$593 million (2004)

Economic aid recipient

$78 million; note - substantial aid from India (2004)

Currency code

ngultrum (BTN); Indian rupee (INR)

Exchange rates

ngultrum per US dollar - 45.279 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003), 48.61 (2002)
note: the ngultrum is pegged to the Indian rupee

Communications - Bhutan:
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Military - Bhutan:
This page was last updated on 16 September, 2007
Source: CIA >>>

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