Economy of Bhutan

related topics
{company, market, business}
{country, population, people}
{water, park, boat}
{food, make, wine}

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 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. 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. 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.

Contents

Macro-economic trend

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

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. 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 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.

Other statistics

Industrial production growth rate: 9.3% (1996 est.)

Electricity:

  • production: 2 TWh (2005)
  • consumption: 380 GWh (2005)
  • exports: 1.5 TWh (2005) (exports electricity to India)
  • imports: 20 GWh (2005)

Electricity - production by source:

  • fossil fuel: 0.39%
  • hydro: 99.61%
  • nuclear: 0%
  • other: 0% (1998)

Oil:

  • production: 0 barrels per day (0 m3/d) (2005)
  • consumption: 1,200 barrels per day (190 m3/d) (2005 est.)
  • exports: 0 barrels per day (0 m3/d) (2004)
  • imports: 1,138 barrels per day (180.9 m3/d) (2004)

Full article ▸

related documents
Kingsbury Commitment
Yum! Brands
International Bank for Reconstruction and Development
Percy Barnevik
British Aircraft Corporation
Economy of the Cook Islands
Economy of American Samoa
British Steel
Dassault Aviation
Michael Dell
Economy of Lesotho
Pharmacia
Primary sector of the economy
The Open Group
Economy of Mayotte
Economy of New Caledonia
Saab
CFA franc
Consumer
Commerce
Wholesale
List of companies of Japan
Pension fund
List of tenants in One World Trade Center
Holding company
Rogernomics
Economy of Greenland
MyTravel Group
Economy of Cameroon
Avon Products