Bhutan:
Economy

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Other pages in this profile of Bhutan:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


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. Bhutan's 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 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.
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	$1,400 (2003 est.)
GDP - composition by sector	agriculture: 24.7% industry: 37.2% services: 38.1% (2005)
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)
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.)
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)
Agriculture - products	rice, corn, root crops, citrus, foodgrains; dairy products, eggs
Industries	cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Electricity - production	2 billion kWh (2005)
Electricity - consumption	380 million kWh (2005)
Electricity - exports	1.5 billion kWh (2005)
Electricity - imports	20 million kWh (2005)
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 (1 January 2006)
Natural Gas - production	0 cu m (2005 est.)
Natural Gas - consumption	0 cu m (2005 est.)
Natural Gas - proved reserves	0 cu m (1 January 2006 est.)
Exports	$186 million f.o.b. (2005)
Exports - commodities	electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Exports - partners	India 54.5%, Hong Kong 34.6%, Bangladesh 6.9% (2006)
Imports	$410 million c.i.f. (2005)
Imports - commodities	fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Imports - partners	India 76%, Japan 5.5%, Germany 3.2% (2006)
Debt - external	$593 million (2004)
Economic aid - recipient	$90.02 million; note - substantial aid from India (2005)
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
Fiscal year	1 July - 30 June

Bhutan: Economy

Bhutan:
Economy