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 also 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, in its cautious expansion of the tourist sector, encourages visits by 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.
GDP (purchasing power parity):
$7.011 billion (2017 est.)
$6.621 billion (2016 est.)
$6.232 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 169
GDP (official exchange rate):
$2.321 billion (2017 est.)
GDP - real growth rate:
5.9% (2017 est.)
6.2% (2016 est.)
6.1% (2015 est.)
country comparison to the world: 25
GDP - per capita (PPP):
$8,700 (2017 est.)
$8,400 (2016 est.)
$8,000 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 146
Gross national saving:
34.4% of GDP (2017 est.)
33.4% of GDP (2016 est.)
32% of GDP (2015 est.)
country comparison to the world: 15
GDP - composition, by end use:
household consumption: 50.1%
government consumption: 15.9%
investment in fixed capital: 49.4%
investment in inventories: 0%
exports of goods and services: 25.9%
imports of goods and services: -41.4% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 15.7%
industry: 42.6%
services: 41.7% (2017 est.)
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:
8.9% (2017 est.)
country comparison to the world: 12
Labor force:
353,000
note: major shortage of skilled labor (2017 est.)
country comparison to the world: 162
Labor force - by occupation:
agriculture: 58%
industry: 20%
services: 22% (2015 est.)
Unemployment rate:
3.2% (2017 est.)
3.2% (2016 est.)
country comparison to the world: 36
Population below poverty line:
13.3% (2012 est.)
Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 30.6% (2012 est.)
Distribution of family income - Gini index:
38.8 (2012 est.)
38.1 (2007 est.)
country comparison to the world: 74
Budget:
revenues: $692.6 million
expenditures: $818.8 million
note: the government of India finances nearly one-quarter of Bhutan's budget expenditures (2017 est.)
Taxes and other revenues:
29.8% of GDP (2017 est.)
country comparison to the world: 82
Budget surplus (+) or deficit (-):
-5.4% of GDP (2017 est.)
country comparison to the world: 167
Public debt:
93.7% of GDP (2017 est.)
106.8% of GDP (2016 est.)
country comparison to the world: 21
Fiscal year:
1 July - 30 June
Inflation rate (consumer prices):
3.5% (2017 est.)
3.9% (2016 est.)
country comparison to the world: 143
Central bank discount rate:
6%
note: this is the policy rate of Bhutan's central bank
country comparison to the world: 70
Commercial bank prime lending rate:
13.6% (31 December 2017 est.)
14.15% (31 December 2016 est.)
country comparison to the world: 56
Stock of narrow money:
$963.9 million (31 December 2017 est.)
$769 million (31 December 2016 est.)
country comparison to the world: 157
Stock of broad money:
$1.69 billion (31 December 2017 est.)
$1.379 billion (31 December 2016 est.)
country comparison to the world: 164
Stock of domestic credit:
$1.434 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.)
$355.3 million (31 December 2015 est.)
country comparison to the world: 115
Current account balance:
$-682 million (2017 est.)
$-618 million (2016 est.)
country comparison to the world: 111
Exports:
$580 million (2017 est.)
$495.3 million (2016 est.)
country comparison to the world: 171
Exports - commodities:
electricity (to India), ferrosilicon, cement, cardamom, calcium carbide, steel rods/bars, dolomite, gypsum
Exports - partners:
India 95.7% (2016)
Imports:
$1.1 billion (2017 est.)
$1.033 billion (2016 est.)
country comparison to the world: 178
Imports - commodities:
fuel and lubricants, airplanes, machinery and parts, rice, motor vehicles
Imports - partners:
India 91.1% (2016)
Debt - external:
$2.71 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:
$185.5 million (31 December 2017 est.)
$168.4 million (31 December 2016 est.)
country comparison to the world: 128
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.)