Economy of Bhutan
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Economy - overview: The economy of Bhutan, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about 40% of GDP. 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. 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. 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. Model education, social, and environment programs in Bhutan 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. Detailed controls and uncertain policies in such areas as industrial licensing, trade, labor, and finance continue to hamper foreign investment.
In 2004, Bhutan became the first country in the world to ban smoking and the selling of Tobacco.
GDP: purchasing power parity - $2.1 billion (1999 est.)
GDP - real growth rate: 7% (1999 est.)
GDP - per capita: purchasing power parity - $1,060 (1999 est.)
GDP - composition by sector:
agriculture:
38%
industry:
37%
services:
25% (1998)
Population below poverty line: NA%
Household income or consumption by percentage share:
lowest 10%:
NA%
highest 10%:
NA%
Inflation rate (consumer prices): 9% (1998)
Labor force:
NA
note:
massive lack of skilled labor
Labor force - by occupation: agriculture 93%, services 5%, industry and commerce 2%
Unemployment rate: NA%
Budget:
revenues:
$146 million
expenditures:
$152 million, including capital expenditures of $NA (FY95/96 est.)
note:
the government of India finances nearly three-fifths of Bhutan's budget expenditures
Industries: cement, wood products, processed fruits, alcoholic beverages, calcium carbide
Industrial production growth rate: 9.3% (1996 est.)
Electricity - production: 1,788 GWh (1998)
Electricity - production by source:
fossil fuel:
0.39%
hydro:
99.61%
nuclear:
0%
other:
0% (1998)
Electricity - consumption: 345 GWh (1998)
Electricity - exports:
1,339 GWh
note:
exports electricity to India (1998)
Electricity - imports: 21 GWh (1998)
Agriculture - products: rice, corn, root crops, citrus, foodgrains; dairy products, eggs
Exports: $111 million (f.o.b., 1998)
Exports - commodities: cardamom, gypsum, timber, handicrafts, cement, fruit, electricity (to India), precious stones, spices
Exports - partners: India 94%, Bangladesh
Imports: $136 million (c.i.f., 1998)
Imports - commodities: fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice
Imports - partners: India 77%, Japan, United Kingdom, Germany, United States
Debt - external: $120 million (1998)
Economic aid - recipient: $73.8 million (1995)
Currency: 1 ngultrum (Nu) = 100 chetrum; note - Indian currency is also legal tender
Exchange rates: ngultrum (Nu) per US$1 - 43.552 (January 2000), 43.055 (1999), 41.259 (1998), 36.313 (1997), 35.433 (1996), 32.427 (1995); note - the Bhutanese ngultrum is at par with the Indian rupee
Reference
Much of the material in this article comes from the CIA World Factbook 2000 and the 2003 U.S. Department of State website.